How to Beat Your Credit Card Debt

How to Beat Your Credit Card Debt

How to Beat Your Credit Card Debt

One of the most common forms of debt these days is credit card debt. Credit card debt has become such a huge problem, not just in the UK, but also worldwide, that you will see advice on debt management everywhere, including the websites of credit card companies! It is a problem that cannot be ignored, so if you are one of those that are still in denial and are ignoring their problem with debt; it is time to face the truth because the first step to beating this problem is to acknowledge it.

Once you have acknowledged that you have a problem with credit card debt, you have to be able to assess just how big the problem is. Most often than not, credit card debt balloons because people are reluctant to take a really close look at how much they owe in total. Instead, people often just pay whatever they can on which ever credit card company is best at hounding them with phone calls and notices. To be able to tackle problem, you have to find out how much you owe for each card. You also have to know the interest rates and late fees for each card to know which balance is costing you the most money.

Once you know just how much you owe on each card and have ranked the cards from the one that has the highest to lowest cost of borrowing, you then need to look at your money. Figure out how much money you have coming and going out each month, then figure out how much you can set aside to pay off the monthly payments on the cards. If you do not even have to make the minimum payments or just have exactly enough for them, go over your expenses and figure out the areas you can cut back on. You will be surprised how many unnecessary purchases you make each month. You can lower expenses by stopping spending on something or buying cheaper brands.

Once you know how much you can pay each month, figure out your credit card debt management strategy. You can opt to pay the minimum on credit cards with lower interest rates and as much as you can on the higher interest cards. However, if there is a card that has very little balance left, you might want to pour your money into paying that off to get some satisfaction in having paid off a balance. You can also opt to apply for a zero balance transfer card, which would not only help consolidate your debt but also save you much in interest.

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