Credit Card Debt Reduction Needs Careful Planning

By William Blake

It is not a simple matter to reduce credit card debt. Why? Because it is to easy to use your credit card instead of using cash. Many people thus find themselves in a cycle of spending that doesn't seem to stop. Since many credit cards come with extremely high interest rates, such spending needs to be nipped in the bud as soon as possible.

The simplest way to start getting rid of your credit card debt is to stop using it. If you don't do so, your debt will continue to grow with each month that passes. It is also recommended to eliminate all but one of your cards. This card should be reserved for critical situations only. You should also keep a card with a very low limit and interest rate.

A second way is to avail the 0% balance transfers that credit card companies offer from time to time. This offer is made to lure credit card customers, especially those who have accumulated large debts. The advantage is that you avoid paying interest on your debts till the offer period lasts. This is surely useful saving because your repayments go towards clearing your principal debt.

You can do this time and time again until your debt is resolved. Before your current special offer period expires, you should already be ready to submit an application for a new card. Sometimes the balance from one card cannot be transferred to another. If this is the case, pay as much as possible to quickly lower your balance.

It will not always be possible to find a card that offers 0% interest. If this is the case, investigate to find the company that offers the current lowest rate and move all of your debt to that card. Do everything possible to quit paying so much interest and start paying off more of the principal.

You can also link your credit card payments to your bank account. Money from your account will automatically be removed every month in order to pay your credit card bills, thus keeping such debt in check.

Some opt to consolidate all of their debt into a single loan, which is a good idea for two different reasons. First of all, you will pay a significantly lower interest rate as opposed to your credit card; secondly you will only have to make one payment each month instead of the multiple payments you previously had to.

This will help you to stay on top of of your efforts to eliminate your debt, and will spare you the hassles of dealing with several different credit companies.

Wondering if you could be negotiating lower payments on your credit card? You'll find plenty of helpful information on the Debtopedia website at

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