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How To Get Out Of Credit Card Debt – 5 Methods

February 13, 2012

How To Get Out of Credit Card Debt

get out of credit card debt

When asking yourself how to get out of credit card debt, you may have drew a blank as credit card debt can be very overwhelming offering no light at the end of the tunnel. No worries as that is were we come in, as we have compiled as list of different tactics that you can use starting today, that can enable you to get out of credit card debt and put an end to it for good!

How To Get Out of Credit Card Debt Methods

Before we start start these methods that will allow you your own question of how to get out of credit card debt, lets agree on one thing which is from now on you stop using your credit card and only use it for emergency situations. By stopping the use of your credit cards for most or all your transactions, this will allow you to know just about what total of debt you will need to pay off as well as this total will not go up any more, which in turn means that you will end up having to pay off less and less in interest. Okay, now that we have got that out of the way, here are your how to get out of credit card debt methods!

  1. Snowball – First off, one of the most sured fired methods of debt elimination have to do with the snowball method, which is where you take one credit card either with the highest interest and/or the highest principal and pay a lot more than the minimum on that card, in which you pay only the minimum on the other. This debt relif method will allow you to focus on eliminating one credit card debt at a time, allowing you to not get overwhelemed, which after you have paid off the highest interest/principal credit card, then you move onto the next highest interest and/or prinical credit card and use this same get of of debt method again until they are all paid off!
  2. Minimum Payment – Since we are on the subject of minimum payments, do all you can to pay more than the minimum, as the minimum payment is evil and is designed to keep you in debt for the longest time possible. For example say you have $2000 that has an 18 percent interest rate which the minimum payment is 60 a month, resulting in a 4 year pay off. But if you chance your minimum to say double, at $120 a month your you can be debt free about 20 months. Now you are able to see how powerful this how to get out of credit card debt method can be.
  3. Save for retirement! When you start saving for retirement, you will get tax writeoffs simply for doing so, which you can use that extra money to pay off your debt and even take out what you have saved and use it to pay off your credit card debt.
  4. Do it yourself – You also can try to negotiate your credit card debt with your bank or creditors through the likes of negotiating lower interest rates which in turn will let more of your monthly payments go towards paying off your principal instead of just covering the interest rate and maybe a bit more. The best way to negotiate better interest rates is to present to your creditor a sort of run down of your monthly expenses and what you are able to pay. This methods of how to get out of credit card debt also can include do it yourself settlement if you are able to pay one large payment, in which one can often be able to negotiate the lump sum payment some times half or less than what the original principal was. During this time of transferring your debt to the introductory lowe interest rate card, you will want to continuing paying your monthly dues to your creditors until the process is finished.
  5. Balance Transfer – Many banks offer you the opportunity to obtain a 0 percent interest credit card, which will allow you to tranfer all of your debt to that one card for a certain amount of time, usually for 6 to 12 months which is the time where you will want to pay off as much of that debt as possible.

If you are considering professional assistance when questioning how to get out of credit car debt, for consolidation and/or negotiation, it can be a good thing but can be pricey, but if you are unable to do it yourself these professional companies are very valuable and can assist you in not only getting out of debt, but equipt you with methods that help you not go back into debt. Success is not gauranteed this way but if you go with a professional debt elimination company, be sure to check if they are a good company, which can be done by contacting the Better Business Bureau and checking with them. If you have over $10,000 in debt seeking professional assistance is advised and can work to your benefit as many debt elimination companies offer assistance to those who have over $10,000 in debt in the form of the Obama creidt card debt relief program, which offers federal funding that offers the opportunity of having your debt total reduced by 60 percent.

How To Get Credit – Various Methods

September 23, 2011

How to Get Credit

IF you are just starting off like just graduating high school and college, or a just looking to build a credit score, and asking your self how to get credit, there are many different methods that you can use to enable you to establish a good credit score. This article will provide you with multiple ways that you can build a credit score as well as keep it high which will provide you with a lot of freedom that a person with a low credit score can not enjoy.

how to get credit

How To Get Credit Methods

  1. Bank Credit Card – The first how to get credit method you can use is to apply for a credit card designated for people just starting out. These can be found through the bank with whom you are banking with or your families bank. Typically you should be 18 in order to obtain a credit card, but if you have come to this information on how to get credit being younger than 18, then you may still be able to recieve a credit card under an authorized user at your bank, like a parent or a family member. Remeber with this option, that people under 21 have to either provide proof of a source of income or have a cosigner to enable them to get a credit card.
  2. Other Credit Cards – If you cannot get a credit card from your bank, then you can also apply for one through an apparel store or something similiar, like your favorite store or even a gas station card. Terms from these department stores often come with higher payments but can be a great way to build a credit score with as they submit your information each month to a credit bureau.
  3. Secured Credit Card – A secured credit card is another option for beginners when it comes to how to get credit. A secured credit card is essentially a credit card that requires you to have a savings account as well which has 100% to 200% of whatever amount of credit you desire to have. Your payments on your credit card will come right out of your savings account. So if you want 200 dollars a month in credit, you will need to deposit 200 to 400 dollars each month into your account. This option is the easiest one to use when it comes to finding a credit card for beginners. For this how to get credit option, make sure that the secured credit card provider actually does post your history to credit bureaus as some do not.

How to Get Credit – Building and Keeping Good Credit

  1. First off, do your best to not put out a lot of applications during your quest of how to get credit. Every application you submit will come up on your credit report. With this in mind, research what companies have been most likely to supply first timers with credit cards.
  2. Credit cards have a balance called a credit line, which is essentially your limit to how much you can spend. When you get your credit card and for example you have a credit line of 800 dollars, you don’t want to go over about 20 percent of this total, so you would only spend around 175 dollars. This will both make it look like a responsible credit card holder as well as have the payments low enough to be able to afford on time payments.
  3. The last how to get credit method is to pay ontime. This is obvious, but paying on time is pretty much the best to boost your credit score.

Hopefully this information on how to get credit was very useful to you and great luck getting your first credit card.

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