9 Ways to Erase Your Credit Card Debt
Credit Card Debt is a well-known topic in today’s society. Invented almost 70 years ago, credit cards are a life saver which takes back our life step by step. The whole point of credit cards, the way they are rendered most profitable, is that we dig ourselves into debt and stay trapped there forever.
Thousands of dollars are spent each year for paying credit card interests and the truth is that you don’t build wealth with credit card rewards because you can’t beat the credit card companies at their own game.
In this article, you will find 9 easy ways how to erase your credit card debt.
1. Keep track of your total debt.
First of all, find out how much is the total debt that you have. Then figure out how long will it take to you to pay it off. Don’t forget to include interest charges.
2. Pay first your higher interest rate credit card.
Even before obtaining a credit card, make a market research to find out which credit card has lower interest rate charges. In addition, when it comes to payment, pay first the ones with the highest interest rate.
3. Track your spending.
You might be surprised to find out where your money is going. Prepare a budget where you eliminate unnecessary spending. Use the savings to pay off your debt.
4. Pay more than the minimum required.
Do not just pay the minimum at the end of the month. It might get you forever to fully liquidate your card. Furthermore, you will pay fewer interests if you liquidate more than the minimum set.
5. Do not use the credit card cash advance.
Try to avoid using a credit card cash advance for other payments. A debt is still a debt. And a debt from credit cash advance is a high-interest rate one. This will make nothing more than increasing your debt.
6. Stop using credit cards.
If you stop using your credit card, the debt that you have won’t increase. Try to make the payments from your current account. Leave your credit card at home. If you do not have money, do not buy it at all!
7. Always make payments on time.
You have to pay your credit card debt on time, otherwise despite the interest charges; you will have to pay extra penalties. So your debt would increase instead of going down. Be aware of those deadlines!
8. Get a second job to pay your debts.
If your incomes are not enough to pay your credit card debt and not only, probably you should start considering having a second job. Search for a part-time job that you can do on your free time, at least until you pay off all your debts.
9. Try a credit counselor.
If you feel that the situation is out of your reaching point, ask for outside help. You can contact a counselor, a bank officer or check online for different sites which provide credit education and counseling. This way you will get better terms with your lenders.
Life was a lot simpler when what we honored was father and mother rather than all major credit cards.
ROBERT ORBEN, Wall Street Journal, Mar. 17, 1980