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You can begin a plan of credit
card debt elimination today. You don't necessarily need additional
income, you just need fewer expenses, patience and a little
bit of perseverance.
You can eliminate credit card debt
with careful planning and patience. Experts recommend many
different types of credit card debt elimination plans, so
find the one that works for you and stick to it.
Some financial counselors recommend paying off the credit
card with the highest interest rate first. Others may recommend
paying off the credit card with the smallest balance first.
How you proceed is up to you, but it is helpful to have short-term
and long-term goals in mind before you begin. These goals
will help you stay on track and provide motivation when you
are feeling bill weary.
Obviously, one of the most important things you can do toward
credit card debt elimination is eliminate credit card spending.
You will never retire the debt if each month you pay $100.00
on your outstanding balance but add $76.14 to the same balance.
Coupled with interest rates, continued spending will make
credit card debt elimination impossible.
A few other words of advice: always
pay more than the minimum. Also, always pay your credit card
bills in a timely fashion. If you have trouble staying organized,
try using an accordion file to store bills, stamps and envelopes.
You could also try a bill pay service through your bank.
It can be helpful to concentrate
the bulk of your bill paying efforts on one bill at a time,
but you should still pay at least the minimum on the others.
Once each bill is paid redirect the resources to the next
bill. You will be able to eliminate credit card debt more
quickly if you also eliminate unnecessary ATM visits and cash
spending. Living by your budget will help you pool all available
cash for your credit card debt elimination plan.
Another strategy that can help:
consider contacting creditors to ask for a lower interest
rate. It is well within their right to say no, but some may
say yes. The savings you reap can multiply your credit card
debt elimination efforts. Finally, if you choose to close
your credit card accounts (and there is no reason you should
unless you are absolutely unable to manage your charging responsibly)
do not close them until after the bill has been paid. Credit
card companies often will penalize you by raising interest
rates if you close an account that carries an outstanding
balance.
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