Tuesday, September 27, 2011

3 ways to eliminate credit card debt and reduce | personal finance ...

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When you are in over your head with credit card debt, relief can seem miles away. Sometimes it seems they are working as hard as you can make the minimum payments or even to just cover the interest balances.If want to leave the circle of credit card debt follow these 3 easy steps and you?re on your way to freedom financial.

1. The shift to a lower rate card.

If you can transfer the balance from one card highest rate in the low-rate card, you can save some money. Even a card with interest rate of 5% less to make a difference in the amount you owe on your monthly statement credit card. Take the money you save and apply the balance to reduce your debt faster.

2. Pay principle.

It is very easy to fall into the trap of paying only the minimum payment on your credit card, but if you do this practice, it will not get out of debt. The only way to eliminate credit card debt is to dive in and pay. The more you pay the principle that the less you pay in interest, and you begin to notice a difference in the amount of money that will be billed each month.

3. Do not increase your debt.

Make a rule that credit cards are only used for special or emergency purchases. Stop buying things like food or clothing with credit card. It is likely that if you put the issue on the card, often end up buying things that are not going to buy. Impulse buying can be convenient, but they add, and pay for them long after their usefulness has been lost.

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