Get Out Of Credit Card Debt: How To

2007-03-08 10:33:40

( Financial )



There are two types of debt: good and bad. Examples of good debt are your student loans and your mortgage. Good debt basically has low interest rates and is associated with investments that would increase in value over time. A concrete example of bad debt is credit card debt.

Credit cards are very convenient. It saves you the trouble of carrying a lot of cash all the time and sometimes they offer flexible, zero interest loans if you buy big ticket items like home appliances. A single, impulsive purchase on your credit card does not cause credit card debt. However, if these impulsive purchases are done on a regular basis it becomes a problem. It is not easy to get out of credit card debt. The steps to get out of credit card debt look easy enough on paper. Incorporating it into your daily routine is another matter.

There are several ways to get out of credit card debt. The very first thing you can do is to reduce the number of credit cards that you own. The lesser number of credit cards that you have, the easier it is to track you level of debt. It is also easier to manage your credit card bills if you have only one or two cards.

Another step that you can take is to consolidate credit card debt. You can write down the balances that you have on each of your credit cards with their corresponding interest rates. Once you have determined which card has the lowest interest rate, you can avail of your bank’s balance transfer services.

You may also want to stop using your credit cards or keep just one for dire emergencies. You can take your credit cards out of your wallet and leave them at home. You can cut them up and throw them in the trash if this is the only way to stop your impulsive purchases.

Regardless how you decide to get out of credit card debt, you should remember that you need to start with yourself. You should have self-control to stop using your credit cards and not to spend beyond your means.


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