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Reduce Credit Card Debt – Tactics to Eliminate Credit Card Debt and Feel Liberated!

By admin | July 13, 2009

Remember when you were young and so happy when you were given that first credit card in the mail? Getting a Credit card is sort of a right of passage in today’s society, and heaps of folks can remember the feeling of power and exhilaration they were given when they were able to score that first little piece of plastic. In fact, having a credit card truly is sort of a requirement if you’re going to build a good credit history and have the purchasing power you need when it comes time for significant purchases such as a vehicle or house.

Unfortunately, that joy that came with that first card is perhaps well past by this time ; essentially, you probably throw away many credit card offers that come, unsolicited, to your mailbox each month. In addition, you may be one of the millions of people who dread paying all that interest and all those fees every month and would really like nothing else than to work out ways to eliminate credit card debt – or at least reduce it quite a bit.

There are several options you can select from when deciding how to eliminate credit card debt. You can do it yourself, hire executives to help, or wipe out the debt completely via bankruptcy.

Obviously, the least costly way is to do it yourself. Here’s a plan that works for a lot of people; it worked for me when I got sick of paying for my vehicle and needed to be rid of that auto payment. This is what I did:

I sat down and took a good hard look at my revenue and my outgo. Then, I made a plan. For each unsecured debt (credit cards and a signature loan, in my case ) I had, I started paying only the minimum due each month. Then, I took all the money I could find and applied it to my vehicle payment. I paid everything, kept small to spend, and sent the rest to the bank. Every once in a while, I didn’t even spend the entire amount I kept aside, and when that happened, I sent in an extra payment that month. It took me about a year, but by doing that, I cut off over 2 years of auto payments.

After seeing my success, I made up my mind to do the same with my credit cards and signature loan. I then took all the money I had been paying for the car payment ( that was now gone ), and started applying it to one card. I selected the one with the smallest balance as it made me feel good to see the balance go down dramatically. It potentially makes more sense to start with the one with the highest interest rate, but I found I required the support. In 4 months, that card was zeroed out, and I started on the next one. I kept going until all the cards were paid off, except one, on which I kept a little balance. This method requires diligence, but the rewards are incredible.
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For further information on ways to help your debt situation visit this site on ways to Reduce Credit Card Debt

Or visit these other great resources at Reduce Credit Card Debt and Reduce Credit Card Debt

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