Debt Relief Tips – How To Deal With Excessive Credit Card Debt
Are you up to your ears in credit card debt? Are you wondering what to do next
, or are you unsure where you can turn? Fortunately, there is help -- and guess what? It all comes from you. You don't need credit counseling agencies to help you dig yourself out of this financial quandary, and the fix is easier than you might think. It will take some willpower and some self-discipline, but you could see yourself in much better financial circumstances in a very short period of time.
Stay away from "credit counseling agencies"
Turn on the television, and you'll see ads screaming that they can get you out of debt fast, with very little money. However, most of these companies will most certainly take your money, but they won't help you get out of debt. In fact, you could find yourself in worse trouble than you were previously. A better bet is to simply muster up the discipline yourself and follow a simple plan that's going to get you out of credit card debt relatively quickly.
Cut up those credit cards
Ouch! But yes, this is the first step in your escape from the excessive credit card debt plan. Cutting them up is going to ensure that you can't use them to spend more money you don't have, and they'll be too tempting otherwise. So cut them up or at the very least put them in a safe deposit box or someplace else, where you can't get to them.
Don't close your credit card accounts
Closing credit card accounts is only going to make your credit score worse, and you want to make it better. So leave your credit card accounts open, but don't add any purchases to them.
Budget, and pay cash
Now, sit down and figure out your monthly budget. How much do you have coming in, and how much do you have going out for needs? That's Needs, not wants. For example, rent, utilities' payments, car payments, groceries, and student loan payments are needs. "A new wardrobe weekend" at the mall is not. All discretionary spending is to go on semi permanent hiatus, effective immediately.
Pay off your credit cards, one at a time
Once you've got your budget figured out, you'll see how much you have left over. Take 10% of that net income (after taxes) and put it in savings so that you begin to build up an emergency fund (for things like medical expenses or a job loss, NOT shopping). Everything else is going to go toward paying off your credit cards.
Now, get out your credit cards. Figure out which card has the highest interest rate, and set that one aside. Now, make minimum payments on all of your other credit cards, except for the one with the highest interest rate. Then, take the balance of what you've got left after you've make minimum payments on all of your other credit cards, and put that all toward a payment on your highest interest rate credit card.
Keep doing this every month, and you'll see that balances will drop sharply on the credit card you're putting most of your money toward. Before you know it, that one will be paid off. Now, move onto the card with the next highest interest rate, and do the same thing. Put that one aside, pay minimum payments on all of the other credit cards, and then put the balance of the money on that highest interest rate credit card.
Do this one card at a time, moving from highest interest rate to lowest interest rate as you do so, and you should see that your credit cards are paid off in a very short period of time. And best of all, you didn't pay a credit counseling agency a load of fees to do it for you. With the discipline to do it yourself, you can truly find yourself credit card debt free, very quickly.
Debt Relief Tips How To Deal With Excessive Credit Card Debt
By: coleman stump
Mafia Wars Item Tips - Get Hold Of It Now! Mafia Wars Stat Tips - Get Your Copy Now! Obama Credit Card Reform – Tips To Capitalize For Getting Out Of Credit Debt Obama Credit Card Relief Reform – Tips To Take Advantage For Debt Relief Credit Card Debt Tips – How To Get A Lower Interest Rate On Your Credit Cards Obamas Credit Card Debt Relief – Tips To Take Advantage For Debt Relief Credit Card Debt Tips – How To Negotiate And Get A Better Deal Farmville Stat Tips - BOOST Your Stats by Ridiculous Amounts! Farmville Experience Tips Will Have You Leveling Twenty Times Faster! Farmville Points Tips Unlock Masses of Experience! Farmville Coins Tips - UNLIMITED Coins For Your Account Farmville Money Tips For Everyone HERE! Credit Debt Bankruptcy – Tips To Eliminate Your Credit Card Debt And Avoid Bankruptcy