With today’s economy, there are millions of people in the United States and in many other countries who are struggling with debt. It is easy to become overwhelmed with debt, with credit cards being the major factor of debt.
Credit cards are tempting to people because they almost view credit cards as free money, until they receive the bill. Most people don’t take the high interest rates that come along with credit cards into consideration when they begin using them.
When used responsibly, credit cards are not a bad thing. However, they can make or break the credit score of individuals depending on the manor in which they are used.
When you’re in debt, it may be hard to see the light at the end of the tunnel. However, alleviating your debt is simple if you start elimination credit cards and credit card debt
so you are left with one credit card that will be used for emergencies.
In order to eliminate credit cards, one should start paying them off.
When paying off credit card debt, you should focus on paying off the credit card that contains has the smallest amount of debt. Than eliminate the cards with the highest percentage rate of interest. This is important because the interest rates increase your
debt tremendously.
The steps to eliminate credit cards are:
The most important step is to stop using your credit cards altogether, pay only in cash.
Pay as much as you can to your credit card account each month and start a system of paying off credit cards so you will be left with only one credit card.
Pay all balances due on your credit cards. Pay as much as you can. Pay off the credit cards with the smallest amount due or those with the highest interest rates first.
Once you have paid off a balance on a credit card, you should close out the account to avoid allowing yourself to get back into the same situation in the future and avoid having credit card debt.
Keep one credit card for emergencies; be sure to keep the card with the most favourable terms, such as the card with the lowest interest rate and a lower spending limit. A lower spending limit will keep you from using the card frequently, and allow you to reserve the available balance.
Start using cash instead of credit cards.
It is very easy to buy with a credit card; you do NOT feel like you are spending money when you sign for your purchases. A signature does not register in our minds as actual money but it adds up to your credit card debt.
But when you are paying for things with cash (real money), you feel like you are actually spending money (because you are!). You can count the money and see right away how much is left in your wallet. As a result, you limit yourself to what you can afford and you spend only the money you have.
If you wish never to have any credit card debt, eliminate all your credit cards and open a Debit account.
A debit card is a good alternative to credit card. Debit card is similar to cash; you can spend only the money you have in your account, thereby preventing you from getting into debt and specially credit card debt.
Edna Ferman is a Personal Finance expert and coach and residing in Sydney Australia. The creator of The EKG Money Method, Eliminate Debt, Keep your goals in sight and Get out of Debt. Edna has created this method, using her experience and expertise in managing her business, her business finances and her personal finances. With this knowledge and using this method herself, Edna has been advising and helping many people in enabling them to reach their financial freedom and will show you how to have a passionate love affair with your money.http://www.theekgmethod.com Feel free to visit my blog for more information and tips:
http://www.theekgmoneymethod.blogspot.com
How should I handle my credit card debt since I am foreclosing on my house?
I am going to let my house in California foreclose. I have about $28,000.00 in credit card debt. Should I file for bankruptcy? Should I just not pay my credit cards? Or should I continue to pay my credit cards? Is there a certain dollar amount of income you are allowed to make to be able to file for bankruptcy?
Answer
Before you look into BK, you should check out www.debtbills.com. They are an alternative to BK. You will have exeperienced attorneys that will be contacting your creditors on your behalf.
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I know of some people that have credit card debt at 24% rates. Paying that down rather than letting the federal government hold on to it for longer is a pretty big return. If your refund was $3,000 that would be in the ballpark of $400 to $500 not having done all the time value of money calculations.
Negotiating Credit Card Debt Yourself - 4 Things Everyone Should Know ;O
They claim they will save you (x) dollars in credit card interest by negotiating your credit card interest down. They claim/ guarantee it will NOT negatively impact your credit report. (X depends on how much your total outstanding credit card debt is at that point)