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9 Steps to Overcome a Credit Card Debt Problem |
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Written by Eric K Frey
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Wednesday, 22 April 2009 10:21 |
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First of all, you can take comfort in the fact that you are not the only one fighting the credit card debt problem. There are hordes of people who might have an even worse credit card debt problem compared to you; all of them seeking to eliminate the credit card debt problem. So what is the solution to credit card debt problem?
by EricKFrey
First of all, you can take comfort in the fact that you are not the only one fighting the credit card debt problem. There are hordes of people who might have an even worse credit card debt problem compared to you; all of them seeking to eliminate the credit card debt problem. So what is the solution to credit card debt problem?
You are probably already aware that many different ways and methods to reduce debt. Some ways are better than others, but keep in mind that just because a method is simple does not mean that it is ineffective. Presented below is a simple approach to finding financial freedom by reducing your debt.
1. Take stock of the situation i.e. draw up a table with the following fields " Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.
2. Using the information for each of your credit cards - fill in the table.
3. Decide which card adds the most to your credit card debt situation. To do this you'll need to consider both the balance on the card and the APR.
4. Contact your credit card company and see if you can use reward points to make payments on the principal balance due on the card. If not, use the points to get cash at very least to get something that you need so you don't have to pay for it.
5. Compare options for balance transfers and other ways of consolidating the number of credit cards that you have.
6. Your primary effort should be of reducing the debt on the credit card that adds the most to your debt problem. Pay the minimum on all other cards.
7. Control your spending behavior. The last thing that you want to do when trying to reduce debt is to keep adding to it by spending excessively.
8. Look for alternative means of adding to your income (more money means earlier termination of credit card debt problem)
9. Set monthly goals for paying your debt and take pride in achieving those goals. As you watch your debt disappear over time, you should look forward to celebrating your accomplishment when you are finally debt free.
These suggested steps are a simple approach, but it is an effective approach when thoroughly applied. If you do some research you will be able to find a number of good tools and programs that will help you assess your credit card debt problem and formulate a good plan of attack. The goal of finding financial freedom will be yours for the taking if you are truly focused on reducing your debt.
Information:
Eric Frey is a MBA student who is very interested in the topics of debt management and financial freedom. If you are in debt and want to learn how to become completely Debt Free in just a few Years or sooner, no matter your income level or where you live, the secrets that Eric uncovered may interest you. For more information visit Your Financial Freedom Guide and learn what he did. |
