Top 10 tips to eliminate your credit card debt
Credit cards debt can be a never ending cycle of repayments, fees and interest. Below are 10 things you can do to break the credit cycle, eliminate your debts adn get your finances on track.
1. Stop using your credit card.
Stop it right now. Don't reduce the amount of time you use it, just stop all together. Put it in the bottom of a container, fillit with water and put it in the freezer. Don't get it out again until it is totally paid off.
2. Accept responsibility.
You applied for the card, took it shopping and enjoyed the purchases – it’s not the fault of the credit card, or of the bank or of society. Realise your mistakes and learn from them.
3. Get a debit card.
This card uses only your own cash savings. Do you remember cash? It still works. It will encourage you to save for big purchases and you won't be able to spend money you don't have.
4. Don't apply for more cards.
The more cards you have, the more debt you can accumulate and the bigger the trouble you get yourself in. Keep paying off and cutting up cards until you are left with none. (You can keep one for emergencies if you promise to use it wisely)
5. Decline limit increase offers.
You are trying to reduce your debt not increase it. If you are nearly at your credit card limit you should be taking serious steps to change your spending habits and increasing you limit is not one of them.
6. Transfer your debt.
There are plenty of introductory and transfer offers on the market. transfer your credit card debt to a low introductory rate, calculate how much you need to make in monthly repayments to eliminate debt before the honeymoon period ends
7. Make your repayment on time.
Late fees can be as much as your minimum monthly repayment – avoid them at all costs.
8. Check out low fee offers.
Trade in your fancy rewards offers for a low interest rate and minimum fees and charges.
9. Make more than the minimum repayment.
Minimum repayments only make the bank happy try to at least pay an extra $10 a month, but put any spare cash you have towards your debt. Once it is paid off that money can be allocated elsewhere.
10. Make reducing your credit card debt a MAJOR priority
Work out your budget and then allocate any surplus, no matter how significant to reducing the credit card balance, track your progress each month as to how your debt is reducing
Remember, it has taken you a while to accumulate this credit card debt, it will take some time and commitment to getting rid of it. Develop a strategy, stick with it and reap the rewards. You will be surprised how much lighter and richer you feel once the credit card blues have shifted from your life.
For mroe help with breaking our of the debt cycle visit Debt Rescue.
