The best strategy to erase credit card debt
Copyright: Bill A Smith http://www.ameridebtservices.com/
The best strategy to erase credit card debt
Credit card debt is a growing sickness in the United States and
Europe. It is very important to eliminate debt and take control of
your financial health.
In the below section, I have listed the best strategy to erase
credit card debt. This strategy is tried and true and often
recommended by financial planners and debt consolidation firms.
In an Excel spreadsheet list all your credit cards, balance, credit
card interest rate and minimum payment from your most recent credit
card statement. If you are not computer savvy, you can list them on
paper.
Sort the list in ascending order of interest rate so that the credit
card with highest interest rate is at the top and the credit card
with lowest interest rate is at the bottom.
Make a count of minimum payment of all the credit cards in the list
you just created.
Now calculate how much money you can save to pay off your credit
card debt and become debt free. If you cannot pay off more than the
minimum payment, it is time to do some budgeting to save more and
pay towards your credit cards.
Each month pay off the minimum on all your credit cards. However, on
the credit card with the highest interest rate, pay the minimum plus
the additional amount you have saved to pay off your credit card
debt.
Continue to follow this strategy until the credit card with highest
interest rate is completely paid off. In a similar manner, work on
paying off your second credit card but remember to make minimum
payments on the remaining cards.
Besides the above golden strategy, you can call your credit card
companies to request for a lower interest rate. Due to stiff
competition, many of the credit card companies will readily agree.
Lower interest rates mean you can pay off your debt much faster.
In some cases, credit card companies will not be willing to reduce
your interest rate. This might be a good time to hop on the internet
and do some research on credit cards and get a new low interest
card. Many companies will allow you an introductory rate for your
new credit card.
