How To Eliminate Your Credit Card Debt

For over a year now, I have been personally trying to eliminate my credit card debt

. I have about $7,000 on a few several credit cards. Not enough for a Debt Settlement Program or Debt Consolidation, however enough to make me not comfortable with having it. The credit card debt is not costing me that much money however I realize that about $1,000 of it is at a 15% interest rate which gets added on every month.

The interest rate of 15% is what keeps me having to worry concerning doing away with my Credit Card Debt. Thus every month 15% of my 1000 balance is $150 being added to the previously existing $1000. That is a great deal of money when you think of it over 5 months. The money is even compounded each month so the next month they would tack 15% on to the original balance. By the fifth month, if I wasn't paying off the balance it would likely grow to $1,749. That $1000 is now costing me way more then I had formerly intended.

The essential part of eradicating your credit card debt is to recognize that the financial depletion that it will cause. A person with plenty of credit card debt has to be aware about the troubles that it is taking them. This can run just inline with a person who is trying to give up smoking. Why would a person give up if they would not know how bad it was for them? Men and women who smoke generally are definitely not around folks dying from lung cancer. This is a difficult comparison yet, the same may be said with regards to folks who spend plenty of money on their credit cards. These folks really don't realize the amount of damage they could possibly be doing to their financial situation. They may possibly have a better realizing if they were compelled to listen to folks who were going into bankruptcy. The bottom line is that you have to recognize there is a problem just before you can fix it.

After one realizes that they have a problem with their credit card debt, they have to look at where the credit card debt came from. Once someone knows where the debt came from they can take actions to eliminate it. I will use a sick person as an example again. If someone comes into the hospital and is very ill the first thing the doctors do is try to figure out where the most pain or more threatening injury is. If the person has something wrong with their heart or lungs, they will most likely try to fix that first. This is a dramatic example but it hits the point. Take a look at your credit cards and see which card is the most threatening to you.

While your credit card debt wont kill you, you should still look to see which one is affecting you the most. The easiest way to see where you are hurting the most is to look for two things.

1. Look for the highest balance you have on a card.

2. Look for what the highest interest rate you have.

This might not be the same card. You might have a card that has a $10,000 balance on it but has a 5% rate. The other card you have might only have a $5,000 balance, but is at a 15% interest rate. This second card is the card that you would want to pay off the fastest because it costing you the most money because of the high interest rate.

Concentrate all of your energy on having this card paid the sooner as possible. Avoid spending money on this card and pay it down in as big of chunks as you probably can. Try not to utilize any of your credit cards while you're trying to get rid of your credit card debt. In case you definitely have to utilize a card, utilize the one with the cheapest interest rate. This is the best course to reducing your credit card debt.

If you see that you might be only able to make the minimum requirements on these cards therefore you must take into account talking to a debt consolidation representative just like michigan debt relief, tennesse debt relief, or virginia debt relief with regards to their debt settlement program. These programs are for folks who ask themselves these 2 questions. 1. How much am I paying out a month in interest? 2. Where will I be in three or more years from now if I continue on paying what I am. If you are going to be in the same place you must look at debt settlement for your credit card debt elimination.

by: Steven Smith

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