Manage Credit Card Debt
Are you having trouble paying your credit care? Do you want to take control of your debt? Start by honestly evaluating your spending habits and then consider the following steps to help you manage better.
Remember, you are not the only person with this problem; however, in order to get out of debt you have to start immediately. The key thing to remember is if you are serious about clearing up your credit card debt (and finally seeing a statement that says ‘0’ balance) you will most likely have to give up something.
If you can pay off some of your debts in full then by all means do so. Consider what you can sacrifice to pay off debt. Do not focus on just the minimum debt payments, look at what you are spending money on every month and decide what you can go without so that you get out of debt.
Put together all of your monthly financial information, including all of your monthly income, expenses and especially your credit card debt; interest rates, balances, and current minimum payments.
Organize and analyze the key information. Itemize the credit card interest rates from high to low. Then you need to do this again except use the balance information as the determining variable. Then determine the minimum payments and add them up.
If you can afford all the minimum payments then you are in a good position. If you can’t then you should consider a debt management programme with the lender.
If you can afford to pay the minimum balance on all of the debts, do so except the highest ranked on the list (the highest interest rate). The highest ranked card should receive all of the money you can afford to part with until it has been completely paid off.
Once you’ve reduced the balance to ‘0’, cross that card off your list and put it in a safe place (do not cancel the card; a ‘0’ balance will look good on your record or you may need it for an emergency). Do not charge to it again until you are in control of your finances and only when you need to and can afford to.
Continue this process until all of your accounts are paid-in-full.