How can I get rid of my credit card debt? If you are one of the many people that are asking themselves this question then you should read this article to find out how you can get out of credit card debt.
One of the most common questions asked is “how can I get rid of my credit card debt?” Even Australians get unnerved when confronting their credit card debt, no matter how resilient they may be. Luckily, there is a way to handle this debt and there are 8 steps you can follow to get it done.
How can I get rid of my credit card debt?
1. Examine your debts.
Make a list of all the debts you owe on your credit cards on a piece of paper in a graph format. Be sure to include interest, minimum monthly payments, the debt amount and any other charges. Make a total at the bottom of every column so that you can see your debt situation exactly as it stands. You can then look at your past statements and see what kinds of purchases you used your credit card for so that you can modify your spending habits.
2. Make a budget.
It is important to make a budget if you are wondering “How can I get rid of my credit card debt?” This is indeed, the only way out. You’re going to have to limit your spending to necessities, so that you have enough left over to work out a payment strategy that is workable. You should also consider getting more cash in by getting a second job, collecting any money owed to you and selling any unwanted items.
3. Destroy your cards.
If you completely destroy your credit cards the temptation to make any more purchases will be gone. You can then focus all of your energy on repaying your debt, and not add to it.
4. Use money from your investments.
If you have any money invested you should take these funds and apply them to your cards. Once your situation improves you can start reinvesting once again.
5. Make a payment strategy
Always pay as much money as you possibly can every month, and make sure that you are always paying the minimum payment required. If you don’t see your debts reducing very quickly you may feel like it has been all in vain. You may want to try making weekly payments instead of monthly ones in order to cut down the amount of interest that is accruing.
6. Stay in communication with your creditors
Let your creditors know how you intend to pay off your debt as fast as you can. You can show them your budget and an action plan to prove you are committed.
7. Consolidate your debts
If you have multiple debts on different credit cards and are wondering “How can I get rid of my credit card debt?” you can consolidate them into one loan or credit card account to keep your debt management simplified. If this is not possible then make sure that you keep track of all the balance due dates so that you don’t have to pay any late fees.
8. Get credit counseling
You may want to seek assistance or counseling from a qualified financial planner if your debt has gotten out of control. He will be able to give you support and advice, which would be appreciated during this troubled time.
How can I get rid of my credit card debt? This question has been asked many times by many people. Use this outline to help get your finances back in control.
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