Getting Out of Debt from Credit Card Loans

2007-03-08 10:33:40

( Financial )



Using a credit card to help you in getting out of debt is not a wise decision. While credit card purchases could solve short-term financial problems, in the long term it could be financially damaging if not settled immediately.

Credit card companies charge a certain percentage per month; if you multiply that by 12 months you will find that the interest for a year is alarming.

If you are decided in getting out of debt you must discipline yourself in making repayments and in making further purchases with your credit card

Don’t make any more charges on the card. Cut the card in half to avoid temptation in further spending.

Never obtain a cash advance from credit cards to pay off your debt. You will never get out of debt by borrowing further money

You should pay for everything in cash even when have gotten out of debt. If you don’t have the cash, then don’t buy it. Always think twice before purchasing a particular item.

If you have more than one credit card see which has the least amount of interest, and pay back a larger amount to this card. In that way, you can transfer some of the outstanding balance of the card that charges the higher interest to the credit card that charges you a lower interest per month.

Always pay above the minimum due in order to settle the total outstanding balance due sooner. Paying only the minimum due in a month only pays for the interest that was charged for the month and only a small amount of the actual outstanding balance.

Look for a consumer credit bureau or seek free credit counseling services. They could assist you in consolidating all your debts and with negotiating a feasible payment plan. You can pay up a certain amount per month with the interest included over a certain period of time.

Getting out of debt is not an easy accomplishment. Once you have become paid off your debt, you can think about investing your money wisely by seeking financial advise from banks or other financial institutions on how to make your money grow instead of spending it. Putting away a certain portion per month for emergencies that can occur is also a good idea so you can obtain money during the times that you could be in desperate need.


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