How to Get Rid of your Credit Card Debt
Credit cards are a charming prospect, especially when you think of how easy they make paying to be. This however is usually at a huge cost, most people find out only when the bill arrives. There are more and more people in credit card debt, who find that dealing with it is not as simple as one might imagine. You however have the means to avoid being a victim of such circumstances. There is an urgent need to get people off credit card debt.
One needs to stop using credit cards. This may seem like the most basic of solution, but following through is not as such. Its convenience has made it difficult for most people to stop. Cash payments should become the new norm. Cash is also great at making it clear how much you are spending, which can help you cut back on the habit.
You need to make a budget. It has to be written and realistic. Make columns for both your income and expenditures in a month. This will make it easy for you to know the things that use up your money. You will then determine where best to direct your money. You need to ensure you have enough to pay off your credit card debt.
You need to identify the card with the highest interest rate. You need to then transfer your balances to the one with the lowest interest rates. Then do away with the former ones. You need to find out what other banks offer, so that you can spot better terms. You can expect some to take in your balances from other banks. You will thus have an easier time paying off that card, when you face less charges.
Another way is to take all your balances from different cards and putting them as one debt. This is achieved when you take a short term loan to pay off all your credit card dents at once. This will then present you with one point of making payments, which is less of a hassle every end month. Personal loans also tend to have lower interest rates when compared to credit cards. You are better off dealing with the lowered interest rates.
You can also increase your monthly payment by double the expected minimum. This is great, since you will have be lowering what you need to pay faster. Interest rates are usually a function of the expected payment amounts. This method helps keep that rate down. This should see you paying more per month. This will make the credit card debt disappear much faster than you had earlier thought.
Resource: click for source