The easiest way to eliminate credit card debt is to insert some common sense and practicality back into your spending and budget plan. Many times, it was an impulsive purchase or lack of attention to proper budget planning that created a credit card nightmare, so let's review some common-sense tactics to make sure you have all the credit card basics already mastered.
Tips How to Pay off Credit Cards
When you owe thousands of dollars in credit card debt, manage your bills by interest rates. Make the largest payments on cards with highest interest rates so you can have the most impact on the overall debt. Just paying the minimum amount might make you sleep better at night, but in the long-run, it will do little to improve your credit.
Speaking of high interest rates, try to eliminate them. Everyone has heard about shopping for a card with a low interest rate, but start by contacting your current credit card companies. Often times, if a company knows you are serious about closing an account, they will offer you a better rate. So call to negotiate when you already have an offer for a lower interest in hand. A little leverage goes a long way.
Another common-sense tactic is to put credit card payments on an automatic payment system. Also, create a centralized document that has all contact info and payment information for each card. Lack of organization and attention to detail is often to blame for late payments and losing control over personal finances.
In addition to disorganization, lack of preparation is another reason that forces people to turn to the evil credit card empire. If you can follow a budget that creates padding for an emergency cash reserve, you will decrease your chances of running up a credit card that you spent months paying off.
Credit card companies take advantage of consumers when they are most vulnerable. An emergency cash reserve takes the pain out of paying interest on life's financial emergencies. The bigger your cash reserve, the less risk you have of running up credit card debt.
The higher your balance and the more cards you have, the more you may benefit from debt consolidation. Discuss loan consolidation with your local credit union to learn about the benefits of making one payment instead of several to different credit card companies. Credit unions and non-profit agencies offer successful debt reduction programs that could quickly help you get your credit card disaster cleaned up as quickly as possible.
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