It Is Time To Eliminate Your Credit Card Debt
Let me give you some sound advice for taking care of your credit card bills – pay them off and be done with it! You may not think you have enough money on hand to do this but with some consideration to your budget it is possible. Too many people are content to pay the minimum amount due on their credit card bills. If you fit this category use one of the online calculators to discover how much this is going to cost you. That should motivate you to take action!
If you are really serious about eliminating credit card debt it can be done. The entire family is going to have to get involved to make it happen though. Make a list of your monthly bills and your monthly income. A budget is going to have to be implemented for everyone to stick to. This is going to require some sacrifices though including cutting back on eating out and buying luxury items such as CD’s.
Get a copy of all of your current credit card statements and start a new list. Write down each one of them with three columns. List the creditor, the balance, and the rate of interest. The one with the highest rate of interest needs to go on the list first and then rank them down to the lowest. Do not put any new charges on your credit cards unless you have no other option.
Sometimes transferring balances can be a good idea to help lower your interest rates on credit cards. You need to be careful with this though and look at all of the guidelines. You may think you have found a terrific deal as the interest rate on the transfer is 0% or very low. However, it is likely only for a set amount of time and if you don’t pay the balance in full by then it will be more than what it was initially.
Some people think it is best to pay off credit cards with lower balances first. This isn’t going to save you money though so do it the other way. When you make a $50 credit card payment only half of it may be going to the balance and the rest to interest. If you can make a $100 payment though 75% of it will go towards the balance and you can see the amount you owe dropping each month.
After you pay off those credit cards, you may loosen your spending habits somewhat, but don’t let them get out of control. A good portion of what you were paying for credit card debt should be going into savings. This can be for future expenses, large purchases, and even to enjoy a family vacation from time to time.
Once you have paid off all of those credit cards you can start putting that money into a savings account. It is fine to splurge once in a while to buy something you really want or to take a trip. The goal is to keep some money in savings for emergencies so you don’t have to rely on your credit cards. Put them away and don’t use them unless you absolutely have to.