Credit Card Debt Reduction - Easy Ways to Eliminate Credit Card Debt
Did you pay your credit card bills on time or made just the minimum payment every billing cycle? The victims of recession would have a tough time pulling together the torn edges, losing a job, facing unemployment, still trying to meet the basic needs.
Paying off the debt under such circumstances might be an unthinkable option.
So have you decided to file bankruptcy? That would not improve the situation either, rather make it worse.
Bring together all your credit cards and arrange it in the order of the interest rate associated, one with the minimum interest rate 5% or 10% at the top, while the highest APR e.
g.
: 33% at the bottom.
Now make a target to pay off the debt on the lowest interest rate first.
So, if your list has credit card with 5% interest rate at the top, clear the bills and plan to move the credit balance from the high APR to the low APR.
The fundamental concept of a credit card company is to make money over late payment, that's when the APR is effective.
If you keep paying the minimum amount, it might take you years to get rid of the debt, as the interest rate cumulates over the time period increasing your principal debt multiple times.
Instead make full payment and start clearing off the debt gradually.
If required go for a debt consolidation loan, this is a loan taken to pay off another loan.
Essentially it is the equity generated by your secured loan (e.
g.
: house loan) and is used to channelize to the credit card companies.
There are more chances of getting debt consolidation loan at a low interest rate, use this loan to eliminate your unsecured debt.
You can repay the debt consolidation loan at a low APR, stretched over a longer period at an affordable amount.
Refer to guidelines provided online by credit counselors.
They would be able to advice some really valuable tips and tricks to get rid off the debt, made a wise budget and have a healthy finance.
It is recommended to refer to debt relief services, they direct you to the right debt settlement company or the debt management company for help required in extreme cases.
It is important to understand these are paid services and must be wisely selected to help save more money than lose it.
Paying off the debt under such circumstances might be an unthinkable option.
So have you decided to file bankruptcy? That would not improve the situation either, rather make it worse.
Bring together all your credit cards and arrange it in the order of the interest rate associated, one with the minimum interest rate 5% or 10% at the top, while the highest APR e.
g.
: 33% at the bottom.
Now make a target to pay off the debt on the lowest interest rate first.
So, if your list has credit card with 5% interest rate at the top, clear the bills and plan to move the credit balance from the high APR to the low APR.
The fundamental concept of a credit card company is to make money over late payment, that's when the APR is effective.
If you keep paying the minimum amount, it might take you years to get rid of the debt, as the interest rate cumulates over the time period increasing your principal debt multiple times.
Instead make full payment and start clearing off the debt gradually.
If required go for a debt consolidation loan, this is a loan taken to pay off another loan.
Essentially it is the equity generated by your secured loan (e.
g.
: house loan) and is used to channelize to the credit card companies.
There are more chances of getting debt consolidation loan at a low interest rate, use this loan to eliminate your unsecured debt.
You can repay the debt consolidation loan at a low APR, stretched over a longer period at an affordable amount.
Refer to guidelines provided online by credit counselors.
They would be able to advice some really valuable tips and tricks to get rid off the debt, made a wise budget and have a healthy finance.
It is recommended to refer to debt relief services, they direct you to the right debt settlement company or the debt management company for help required in extreme cases.
It is important to understand these are paid services and must be wisely selected to help save more money than lose it.
