How to get rid of credit card debt
Friday, January 22nd, 2010We always here that credit cards are bad, and that they should be avoided. But what are you to do if you already are knee deep in debt stemming from such cards? The annual percentage rates on these cards are extraordinary high, and paying them down sometimes feels impossible. But to get rid of credit card debt isn’t as difficult as it sounds. It all starts with getting an overview of the debt.
You need to know exactly what you own. That is an important first step. By doing this you get an “ownership� to the debt and will also feel increased motivation to pay it down as you see it decrease. Pull out all the latest bills and get an overview on who you owe money and how much to each.
Next, break down the usage for each card. Where are you using them and what are you buying? You want to do this for the same reason as mentioned above. You need to have feel “ownership� to your spending. By studying what you have bought you will also realize all the things you have purchased that you don’t actually need. Credit cards are seldom used to buy goods that are essential to living, and when you see enough of those Starbucks coffees on your credit card statement you will have found the first thing you can cut down on.
Consolidating credit card debt is also an option you should look in to. By applying for a cheaper loan that you can use to pay down all your expensive credit card debt you will be paying lower rates, and thereby afford to pay down more on the actual debt each month.
No one is saying that you are in an easy situation with your debt. But you have to understand that only you can take the responsibility and action necessary to pay down your debt. You won’t regret it!
