Blog Archives

Eliminate Credit Card Debt – 7 Methods

December 15, 2011

Eliminate Credit Card Debt

Credit card consolidation, credit counseling and setting up a budget can be excellent tools to use when setting out to eliminate credit card debt you have, but there are other ways that you can use that can help you pay it off without having to use a settlement or consolidation company, as these companies are in business to keeping you in debt longer so you pay more interest. If you are looking for credit card debt elimination methods that actually work, look no further as well have 7 ways to do so right below!

eliminate credit card debt

  • Save For Retirement – Now this isn’t your traditional save for a rainy day tactic, it is applicable to getting your out of debt fast. When you save for retirement you get excellent tax write offs which you can use as funding to eliminate your credit card debt, as well as use the funds you saved to pay it off as well if you so choose.
  • Debt Transfer – Consider tranfering your debt to a card that has low or no interest, or just lower interest than what you are paying on now for a certain period of time, which the time period is usually up to a year. During this short period of time, this is where you buckle down and pay big on the debt, either eliminating the credit card debt for good, or leaving just a small amount left for you to pay off which you can easiily knock out after the low interest period is over. These are also referred to as balance transfers.
  • More Than The Minimum – The minimum payment has two sides to the coin, where the good part about it is that you can afford it with ease, the other side is that it is designed to keep you in debt for the longest period of time. Paying more than the minimum will both pay off your debt faster, as well as pay less in interest. The power of paying more than the mimimum can be proven evident by using a minimum payment calculator and putting in a higher minimum total than what you are paying now. You don’t even have to go through a debt settlement company to settle your debt, you can acutally negotiate the terms yourself with your credit card company.
  • Snowballing – Focus on paying your smallest account off first focusing all efforts on knocking out that debt, then shift your focus to the next smallest debt total. You can use this method to both eliminate your debt as well as instill more and more confidence as you pay off each account. This will also take away the overwhelming feeling of trying to pay all debt off at the same time. While you are dropping more than the minimum payments on the smallest debt, all you have to do is pay the mimimum on the others. Rinse and repeat! You can also try to negotiate lower interest rates on your cards during this process. You can also use the snowballing effect to eliminate credit card debt on the cards with the highest interest first.
  • Debt Settlement – Settling your debt can mean that you end up paying half or less than what you originally owe. Credit card companies want you to pay which if you are not paying they are willing to go to extensive lengths to get you to pay. Settling debt will allow you to pay off your debt in one swift move, leaving you debt free at a much lower cost.
  • Smart Shopping – Pinching pennies may be the last thing you want to do, but it can help you save big each month, which you can use to pay more than the minimum on your debt. If you were ever a student, you know exactly what bargain shopping is, so revert back to the colleges days!
  • Use No More! – Last but certainly most important is to stop using your credit card to buy things, or just save it for emergencies. This will put a halt to your debt total, which means paying less in interest as well as knowing the exact number that you need to pay off. If you are not comfortable with carrying around cash all the time, you can get a debit card and just keeping a small amount of cash in the account, allowing your to still pay with plastic.

The best part about these methods is when you use them they can eliminate credit card debt without having to file for bankruptcy which will kill your credit as well as chances to borrow money in the future. These debt elimination methods will also allow you to keep your savings in the savings account, that is unless you want to use the funds towards payin debt. Use them today to get out of debt!

Sell Links