5 Tips For Credit Card Elimination
With the economy rebounding so slowly, paying thousands of dollars each year on those credit cards not only does not make sense but, robs you of money that you and family could put to good use. While getting out of credit card debt is not easy and will take time, here are 5 tips that can if followed get you out of debt and have your family on its way to your own economic recovery.
Make a Budget
The first thing you are going to want to do is make a budget and plan on how you and your family are going to live without using those credit cards. The only way you are going to eliminate your credit card debt is to quit using those cards so having a budget and planning for each purchase in advance will help eliminate your need to depend on those cards.
Though it may seem like an old fashion way of living, use cash for whatever you purchase. There is no interest charge when you purchase things with cash so you won't be paying more for an item than its actual cost.
More The Debt Around
Some credit card companies charge more interest than do others so try moving those high interest debts from all those credit cards to one low interest rate credit card. This will end up saving you money while you are paying those debts down.
One Card Only
The only way to eliminate your credit card debt is to eliminate the number of credit cards. Desperate times call for desperate measures so cut up all your credit cards except the one with the lowest interest rate and use that card only in an absolute emergency. Getting rid of the temptation that multiple cards hold will help you live within your budget and make it less possible for you to continue to add to your debt.
Start at the Top and Work Your Way Down
Make a list of the credit cards on which you owe money no matter how little money it may be. Make sure to also list the rate of interest you pay on each card. Then take the cards and list them in order from the highest interest rate to the lowest. Start making more than the minimum payment on the card on the top of the list even it you can only pay an extra $5.00 or $10.00 a month and continue paying on the card at the top of the list until each debt is paid off then move to the next card on the list.
The only way to eliminate that credit card debt is by making the hard choices and some sacrifices along the way. Changing your purchasing and spending habits won't be easy but, is necessary. Adopting the attitude that if you can't pay cash for it you don't really need it will go a long way in helping you to get out of debt faster. It is a long difficult road but, one that can lead you not only to relief from debt but, also in putting more cash back into your families coffers.
Guest post by: Mirsad Hasic is the webmaster and editor of best credit card deals, a site where you will learn how to pick a credit card that suits your current needs while learning how to reach credit card debt relief.