Credit Card Debt Elimination Effective Tips To Help You Succeed
Credit Card Debt Elimination-Effective Tips To Help You Succeed Credit cards have their place, but they also cause untold problems for millions of people. If you are in debt, then chances are that it isn't your fault, but that doesn't change the situation itself. Credit card debt elimination is possible, though it takes some effort. There are several ways that you can get out of debt, but the following plan is one of the easiest and most effective. 1. Assess the situation. It can be difficult to find out exactly where you stand financially, but it is absolutely necessary to have a starting point. Go through all of your income, expenses, bills, receipts, bank accounts and credit card statements, and then tally everything up. You should now know how much income you have, what your monthly expenses are, and what your total amount of debt is. No matter how grim it looks right now, don't worry, the remaining steps will help you to start turning things around for the better. 2. Contact your creditors. Before you move on, you need to put a stop on any damage that is currently being done. Regardless of how much you owe, or how long you haven't made a payment, contact each of your creditors and let them know you plan on paying them back. One of the secrets to credit card debt elimination is making the best deal possible. Most card companies have what's known as a "hardship program". These programs are for people who are struggling financially. If you qualify for the program, you will get very favorable payment conditions for six to twelve months (after which you can try to re-qualify). 3. Make a list. You need to list every debt you have, the current balance, the minimum monthly payment and the interest rate you are paying. Now you have to decide which credit card debt elimination method you want to use. You can either pay as much as possible toward the one with the highest interest rate (paying only the minimum on all the others), or pay as much as possible on the one with the lowest balance (gain, paying only the minimum on the other cards). Both methods work, but you need to choose one or the other. 4. Build up steam. Start making the payments according to your plan, but once a card is paid off add its payment to the next card on your list. As time goes by, you will be making bigger and bigger payments on the card you are trying to pay off. Once you get towards the end, you will notice that each successive card gets paid off more quickly. 5. Enjoy financial freedom. You will be debt free if you stick with this credit card debt elimination plan. Imagine a whole new life where your finances don't take over your thoughts; where you don't have to worry about who is on the line every time the phone rings; where you will be able to finally enjoy the financial freedom that you deserve.