How to get out of credit card debt

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Author: . Cabral" href="http://www.articlesbase.com/authors/j.-cabral/275961.htm">J. Cabral

The question of how to get out of credit card debt has become more relevant since the global economic crisis. Whereas, in the past, a credit card debt may have been manageable, other factors may now mean they are a dire problem in the lives of some people, for example, when a job is lost, or hours are reduced, or a business venture is suffering. Actually, when these extra burdens do exist, credit card usage can increase through simple necessity. At the precise time when the credit card should be used less, it may be the only way to bridge the gap between income and expenses. This makes the issue of how to get out of credit card debt even more thorny.

Although there is no miracle cure for this, there are three basic ways to potentially alleviate the situation if you wonder how to get out of credit card debt: Stop spending on your credit card.

Credit cards can only cause a problem when they handed over for payment. Credit card usage can be become such a habit - especially when times are better - that you do not really think about how often you use them. It may be worth carrying out an experiment and only using cash for a month. Leave the credit cards at home; locked away. There may be times when you catch yourself reaching for the card to make a purchase, and only when you realise the card is not there will you also realise that the purchase you're about to make is simply not essential. Once you have stopped or cut down on your spending, you should have a little extra every month to put towards your debt. One important tip on how to get out of credit card debt is to make sure you attack your higher interest debts first. Consolidate your debts.

This is a great way to reduce your interest payments, therefore freeing up a little more cash to direct towards your debts. This involves looking around for the best credit cardbalance transfer deal and making the transfer to that new card. Depending on your financial circumstances - how large your debt is and how quickly you think you can repay it - you will be looking at a0% offer for six to sixteen months , a 3%-6% offer for a longer period, or a 5%-9% offer for the life of the loan. This is a common approach to the problem of how to get out of credit card debt, as long as you do not continue to spend on your credit card. And especially not on your balance transfer credit card. Any purchases on this new card will be subject to the regular interest rate and will not be touched by any repayments until your transferred amount has been completely paid off. Make use of your home loan.

The answer to how to get out of credit card debt may be under your feet and all around you. Your home. Provided you have some equity in your property - i.e. you owe less than 80% of the value - you could take advantage of that equity and add your credit card debt to your mortgage payment. This will clearly increase the cost of your mortgage payment or increase the length over which the mortgage is paid off, but it may certainly be an option to consider. About the Author:

Regular contributor at Credit Card Finder the most trafficked Australian credit cards comparison website. Read his Balance Transfer credit cards guide to find out how much money you can save with balance transfers.

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