Ways To Get Rid Of Credit Card Debt

In Credit Repair of CreditGuru (September 2, 2010 5:37 am)

I have been trying to eliminate my credit card debt for more than a year now. I have about $7,000 on a few different credit cards. Not enough for a Debt Settlement Program or Debt Consolidation, but enough to make me uncomfortable with having it. The credit card debt is certainly not costing me that much money however I discover that about $1,000 of it is at a 15% interest rate which gets tacked on every month.

The interest rate of 15% is what keeps me being concerned with regards to getting rid of my Credit Card Debt. Thus every month 15% of my 1000 balance is $150 being added to the previously existing $1000. That is a great deal of money when you think of it over 5 months. The money is even compounded each month so that the next month they would tack 15% on to the original balance. By the fifth month, if I was not paying down the balance it would certainly grow to $1,749. That $1000 is now costing me way more then I had initially intended.

The essential part of eliminating your credit card debt is to understand that the financial depletion that it will cause. Someone with lots of credit card debt has to be cognizant of the issues that it is getting them. This can run just inline with someone who is trying to stop smoking. Why would somebody stop if they didn’t know how bad it was for them? Men and women who smoke generally are definitely not around men and women dying from lung cancer. This is a difficult comparison but, the same may be said with regards to folks who spend a lot of money on their credit cards. These individuals do not realize the amount of damage they might be doing to their financial situation. They may possibly have a better understanding if they were forced to listen to people who were going into bankruptcy. The bottom line is that you have to realize there is a problem before you can fix it.

After one knows that they have an issue with their credit card debt, they have to look at where the credit card debt originated from. When an individual knows where the debt came from they can take actions to eliminate it. I will use a sick person as an example again. If someone comes into the hospital and is very ill the initial thing the medical doctors do is try to determine where the most discomfort or more intimidating injury is. If the person has something wrong with their heart or lungs, they will most likely try to fix that first. This is a dramatic example but it strikes the point. Take a look at your credit cards and check out which card is the most threatening to you.

While your credit card debt will not kill you, you should still look to see which one is impacting you the most. The least difficult way to see where you’re hurting the most is to look for a couple of things.

1. Search for the highest balance you have on a card.

2. Try to find what the highest interest rate you have.

This might not exactly be the same card. You could have a card that has a $10,000 balance on it but has a 5% rate. The other card you have might only have a $5,000 balance, however is at a 15% interest rate. This 2nd card is the card that you would want to pay off the fastest mainly because it costing you the a great amount of money because of the high interest rate.

Totally focus all of your energy on having this card cleared as soon as possible. Avoid spending money on this card and pay it down in as big of chunks as you possibly can. Try not to make use of any of your credit cards while you’re trying to clear away your credit card debt. If you absolutely have to make use of a card, use the one with the lowest interest rate. This is the best route to reducing your credit card debt.

If you see that you’re only able to make the minimums on these cards in that case you ought to think about talking with a debt consolidation representative like michigan debt relief, tennesse debt relief, or virginia debt relief about their debt settlement program. These programs are for folks who ask themselves these two questions. 1. How much am I paying out a month in interest? 2. Where will I be in three or more years from now if I keep on paying what I am. If you will be in the same place you must look at debt settlement for your credit card debt elimination.

If you enjoyed this post, make sure you subscribe to my RSS feed!

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment