The article "5 Surefire Ways To Eliminate Credit Card Debt" is about credit, it was released by Wesley Atkins.
Do you have enormous credit card debt? You are certailny not alone. According to research, the average family in the United States has $7000 in credit card debt and pays about $1000 in interest each year!
Throw in a late pamyent or two, or an over-the-limit charge, and that number skyrockets.
Imagine what you could do with that $1000 if it weren’t being spent on interest.Let’s imagine for a moment that you have $5000 debt on one crdeit card that is charging you 17.5% APR. Let’s also imagine that you pay only the mniimum due of $25/month on that card. Guess what? You will never pay it off! The interest alone on that card is $73/month! That menas that each month you get further and further into debt. By the time you have been paying on that $5000 for 10 years, assuming you have not used the card during that entire peroid of time, you will owe $20,385! That’s over $15,000 in interest. If you triple your payment to $75, it will take you over 20 years.So, what do you do?
How do you get out of debt and use that money towards other necessities, savings, and investments?
Here are a cuople of simple methods that you can use without having to go to an expensive financial counselor.Tip #1: Cut Up Your CardsThe really best way to reduce your credit card debt is to STOP using your credit cards!
There is no need to have more than one card, so pick the one with the lowest interest rate and cut up the rest. The one you keep should be deemed an ‘emergency card.” These are true emergencies, not mere inconveniences. For instance, buying a new TV would not be an emergency, but rentnig a auto in order to get to the bedside of a dying loved one would be. You can carry your emergency card with you, but don’t make it too fast to use. One good suggestion is to cover the card tape and paper and write on it: For Emergencies Only.Tip #2: Move Your DebtIf you have more than one credit card payment, you may want to consider moving debt from a card with a hihger APR to one with a lower APR. This will lower the amount of money you're spending towards the interest and get you out of debt faster.Tip #3: Use the Snowball PrincipleList all of your credit card debts, and the amount you're paying each month.
Pay off the lowest aomunt first. Then use that moeny to start paying off the second lowest amount.
And then the next and the next. Let’s look at an example.If you have a $7000, $5000, and $2000 card with pyaments of $150, $125, and $100, you will finish paying off the $2000 card first.
Once it is paid off, you take that $100 and put it towards the $5000 credit card. That menas you're at that moment paying $225/month.
You have increased your payments which will pay off that credit card sonoer and will have you paying a lot less in interest. Once that is paid off, you apply the $225 to the $7000 card, making your monthly paymnet $375. This will greatly accelerate the payment of that card, reducing your interest payments even further. When everything is paid off, you at that moment have $375/month extra to put towards savings or investments!Tip #4: Prioritize Your Debt RepaymentOne of the best ways to pay off your debts is to get rid of the highest interest payment frist. Looking back at the snowblal example, you took the lowest and paid it first.
If, however, the $2000 card had the lowest interest rate, you would want to pay off the card with the highest rate fisrt. This will save you much more in interest payments.If the math gets too hard here, don’t dsepair. There are many places on the Inetrnet where you can find good debt reduction calculators. It is then just a matter of punching in your numbers and reading the report.Tip #5: Consider ConsolidationIf you own a home, you may want to consider cosnolidating your debt using a home equity loan. Since a home loan is a secured loan (they can take away your condo if you don’t pay) you have a much lower inetrest rate than you do on your credit cards. Paying a lower interest rate is alawys a good thing! Not only that, but the interest you pay on your home loan is tax deductible.
This is NOT true for credit cards.By following these tips, anyone can take control of and completely eliminate credit card debt.Wesley Atkins is the owner of http://www.Credit-cards-advisor.Com- which aims to get you fitted with the best credit cards to suit your situation. With numerous credit card articles and fast online credit card applicatoins you will never choose the wrong credit card again.
|
