Oct 10 2010
Eliminate Your Credit Card Debt
For over a year now, I have been personally trying to eliminate my credit card debt. I have about $7,000 on a few different credit cards. Not enough for a Debt Settlement Program or Debt Consolidation, but enough to make me uncomfortable with having it. The credit card debt is not costing me that much money however I realize that about $1,000 of it is at a 15% interest rate which gets added on every month.
The interest rate of 15% is what keeps me having to worry about doing away with my Credit Card Debt. Which means that every month 15% of my 1000 balance is $150 being added to the already existing $1000. That is a great deal of money when you look at it over 5 months. The money is even compounded each month in order that the next month they would tack 15% on to the original balance. By the fifth month, if I wasnt paying down the balance it would likely grow to $1,749. That $1000 is now costing me way more then I had actually intended.
The fundamental part of getting rid of your credit card debt is to understand that the financial depletion that it will cause. A person with plenty of credit card debt has to be aware of the problems that it is getting them. This can run just inline with someone who is trying to stop smoking. Why would someone stop if they did not know how bad it was for them? People who smoke generally arent around men and women dying from lung cancer. This is a difficult comparison however, the same may be said with regards to individuals who spend plenty of money on their credit cards. These individuals really dont know the amount of damage they could be doing to their financial situation. They may possibly have a better knowing if they were pressured to listen to individuals who were going into bankruptcy. The bottom line is that you have to understand there is a problem before you can fix it.
After an individual realizes that they have an issue with their credit card debt, they have to take a look at where the credit card debt originated from. When somebody has learned where the debt came from they can take actions to get rid of it. I will utilize a sick person as an illustration again. In the event that someone comes into the hospital and is very ill the very first thing the medical doctors do is try to determine where the most discomfort or more harmful injury is. If the person has something wrong with their heart or lungs, they will most probably try to fix that first. This is a dramatic example but it strikes the point. Have a look at your credit cards and check out which card is the most threatening to you.
Even though your credit card debt will not kill you, you need to still look to see which one is affecting you the most. The easiest way to find out where youre hurting the most is to look for 2 things.
1. Seek out the highest balance you have on a card.
2. Try to find what the highest interest rate you have.
This might not be the same card. You may have a card that has a $10,000 balance on it but has a 5% rate. The other card you have might only have a $5,000 balance, however is at a 15% interest rate. This second card is the card that you want to pay off the fastest mainly because it costing you the a lot of money because of the high interest rate.
Focus all of your energy on having this card paid off immediately. Avoid spending money on this card and pay it down in as big of chunks as you quite possibly can. Try not to utilize any of your credit cards while youre trying to clear away your credit card debt. If perhaps you definitely have to utilize a card, utilize the one with the cheapest interest rate. This is the best option to eliminating your credit card debt.
If you find that youre only able to make the minimums on these cards therefore you ought to consider talking to a debt consolidation representative just like michigan debt relief, tennesse debt relief, or virginia debt relief with regards to their debt settlement program. These programs are for individuals who ask themselves these 2 questions. 1. How much am I paying out a month in interest? 2. Where will I be in three or more years from now if I keep on paying what I am. If you are going to be in the same place you need to take into consideration debt settlement for your credit card debt elimination.
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