Credit Card Debt

Title:

5 Steps To Credit Card Debt Reduction And Money Saving With A DIY System

Word Count:

713

Summary:

Have you succumbed to the lure of credit cards and found yourself in a bit of a pickle because of it?

Pull up a chair and have a seat – Welcome to the ever growing club of consumer debt. Your biggest challenge now is to dig yourself out of this situation and avoid having to pay anyone to help you do it.

The options at this stage are usually as follow (depending on the level of credit card debt):

• Consolidate into a loan.

• Debt Management.

• Bankruptcy.

• Do Noth…

Keywords:

Credit card debt, credit card, debt, debt consolidation, debt relief, credit card debt reduction

Article Body:

Have you succumbed to the lure of credit cards and found yourself in a bit of a pickle because of it?

Pull up a chair and have a seat – Welcome to the ever growing club of consumer debt. Your biggest challenge now is to dig yourself out of this situation and avoid having to pay anyone to help you do it.

The options at this stage are usually as follow (depending on the level of credit card debt):

• Consolidate into a loan.

• Debt Management.

• Bankruptcy.

• Do Nothing.

• Just pay off the cards over as long as it takes.

• Make the minimum payments and keep spending.

• Make an effective DIY plan.

The more popular solutions – such as consolidation loans and debt management -we see being touted everywhere are the ones that put your money in other people’s pocket. I don’t know about you but for me becoming free from debt should not involve spending more money, or *borrowing your way out of debt*.

So how does a DIY system work?

To break it down into 5 steps it looks something like this:

1. Address your spending habits and why you are in this situation.

To ever win with money and have a comfortable financial future you have to control your money – not the other way round. Take complete control and set yourself some realistic yet desirable goals for the future.

2. Know your options, the ins and outs of how they work – and why they are not for you.

Along the way you will be tempted by quick fix ‘make it all better’ solutions   like consolidation loans and debt management. As mentioned already there is a multibillion dollar industry making a very healthy profit from consumer debt. Your DIY plan does not involve *paying to get out of debt*.

3. Know your situation.

Any debt relief system requires a bit of budgeting. As long you’ve followed the rest of the plan so far, have desirable goals and no intention of taking an easy -and expensive – way out you won’t have trouble budgeting.

The other thing to know is your credit score. There are a staggering amount of mistakes found on credit scores that result in people paying more interest than they should. If you are eligible for lower rates and 0% APR cards to move expensive balances on to – you need to know about it.

4. Minimise outgoings, Maximise income and leverage your cash flow.

If you could be paying less for utilities and day to day expenses you should. There is a very fine art of money saving that you will become very good at if you’re going to be successful at this.

Home economics, consumer education and bargain hunting can save you incredible amounts of cash that can go toward paying off your debt quicker.

If you’re really serious you can take it a step further and create a secondary source of income. Be it a second job, or using a natural skill/strength you have that can earn you money in your spare time.

With the opportunities available online it’s never been easier to find those who are seeking out some knowledge, experience and skills that you have and that they would pay you money for.

5. Form your system and put it into action.(929, 1, ‘2016-07-12 07:50:36’, ‘2016-07-11 23:50:36’, ‘rnrn rnrnLife is a challenging ordeal. You would meet a lot of problems in life that can affect you in a big way. Money problems would be one of these things. It would not be easy to find money especially with the deepening economic crisis all over the world. People may not have enough money for their needs, wants, and obligations anymore. That is why they would often resort to borrowing money. They would borrow, get credit, or apply for mortgages and loans to cover for their expenses. This is a very tricky thing to handle as people would often find themselves stricken with too much loans.rnrnCredit card has become an integral part of one’s financial status. Everything to do with finances runs around the credit card. Your monthly payments, expenses, savings and all that you need to buy solely depends how much you can charge on your credit card. But in the hot pursuit of certain things many credit card customers fail to realize that it is a great trap which becomes more and more difficult to get out of even as you go along and make minimum payments. After all, that is what works best for the credit card companies.rnrnWe start to believe that we will only be accepted because of the stuff we have. Therefore we must have whatever that stuff is, now. We know that in the back of our minds that our value does not come from the sum of the stuff we own. I want to help you get past trying to get acceptance because of what you have so that you will be accepted and admired what you have done and can do. The main difference is, I want you to have all the stuff you ever wanted but I want it for you, not so others will like you.rnrnThere are two types of credit card customers. The first type of customers are those who pay off their monthly bill on time and never give the chance for the credit card company to charge them extra. Such customers don’t have to bother even if their APR is high and there are good rewards. On the other hand, those credit card customers who keep an outstanding balance should rather forfeit their rewards, and go for low APR credit cards. Otherwise they would end up paying a lot more interest than the savings or discounts they are offered.rnrnWhat you see as a credit card discount is just another excuse to make you spend. If you see an offer that says 50 dollars off for every 500 dollars worth of purchases and if that makes you spend 500 dollars where you would have spent only 250, the credit card has achieved its purpose. This is the credit card discount trap, which is used to promote other products by offering discounts on fixed amount of purchases. Most credit card customers fall in this trap of trying to avail a discount and spending more than their limits.rnrnIt is important that you must realize that the credit card companies wouldn’t give away anything for charity. To start with many credit card companies have tie-ups with certain brands and what they do is mutual promotions. What you get in terms of the discount or reward is very less compared to how much you spend or purchase. You will easily exceed 50 dollars. Secondly, the best form of credit card reward is cash back. Even that comes with a cap. So you cannot spend 10,000 dollars every month and expect the credit card company to pay you back 500 dollars in cash back. That wouldn’t simply happen.rnrnAre you rolling down under bad debts? Without any doubt getting out of debt is such a big deal. It isn’t an easy task indeed. But one can do this successfully with the help of better planning and better budgeting. This article will help those who really want to get rid of debt fast It is very necessary to realize the fact that you are in problem. I have seen many people who don’t bother about debt they leave it on time but if they don’t chalk out plans for getting out of debt then how can they get rid of this problem? So, it is necessary to follow the points below.rnrnThere is only one step to successful debt free living and that one step is a debt payoff. Anyone Can Live Debt Free and everyone deserves debt free Llving! So how do you get rid of your debt? The only effective way to lower and get rid of debt forever is to pay it off. The fact that all the nagging via mails phone by the credit card provider and or their collection agent, will be gone, should do good to strengthening your determination and should give you with a reason why you should endeavor to get out of credit card debt Think about the stress-free life after you get out of debt Try to link various reasons together and try to see the benefits through them. All these jointly will assist in bolstering your determination and prevent it from getting weak at any point.rnrnThe first thing you need to do to get rid of debt is to stop charging anything. If you continue to charge, you may never get out of debt. Next you need to realize exactly why you are in debt. You might have an idea, but things will be a lot easier to tackle if you note down all the different debts you have and how much you need to pay off. You should also make this more detailed by looking up the separate interest rates for each account. This will help you to prioritize your debt , where paying off those with the highest interest will help you to save a lot of money in the long run.rnrnCredit card debt can accumulate rather quickly and become an unbearable burden. Just paying the minimum amount due will put you in a position where you are paying for years and years. If you miss a few payments or are even late, the credit card companies can raise the rate of interest to double or even triple what you were paying making it that much harder to get rid of your credit card debt If credit card debt has become a problem for you, there is something you can do to help pull yourself out.rnrnDo not exceed your credit card limit. On the other hand, even if you’ve exceeded your credit limit by a meager 1 dollar, you will end up being charged the over limit fee for crossing the credit line. That explains why credit card companies wouldn’t warn their customers that they cannot make the purchase, as it will take their outstanding balance over their credit line. It is an important source of income and credit card issuers aren’t morally responsible, for you exceeding the credit card limits. This is the over-limit fee trap that a lot of credit card customers get into and find that they are unable to get out of.rnrnDo not fall victim to credit card offers to make matters worse. The new credit card offered by the company will have lower credit limit and higher interest rate compared to your previous one. So with every new credit card , it takes less time for the customer to max out. Over a period, the over limit fee and late fee itself is so high that credit card customers can barely pay it off. This fee is where the biggest credit card profits have come from in recent times. Therefore, getting into credit itself is a bad thing. You are not supposed to spend until the cash is in your pocket.rnrnThe 2nd thing that you need to do to get out of debt is planning. The planning to get out of debt will begin with making a list of the credit card that you presently posses and monitoring the debt and the APR for each of them. The sum of all these various debts, will give you the total debt You also need to ensure if you have been defaulting on payments on some of these credit card (and hence incurring a late fee), that you should avoid that and set it on the program you have prepared to get out of debt. However, you need to be aware of status of your finances before you effectively make that dedication. It’s essential to know how much of your income is available for paying off your debts. Remember in order for this to work, you have to pay as much as possible each month to the card at the top of the list so working out a plan to increase that amount will help you even further. Getting a part-time job and using that extra income for your debt reduction will speed up the process immensely.rnrnOne of the first things you need to do after you analyze and evaluate your individual circumstances is develop a credit card debt repayment plan. Keep in mind this step must follow your evaluation of your current finances and debt. There is no way to know how you can implement a repayment plan until you know what financial resources you have available for taking care of your credit card debt.rnrnUsing this list, develop a budget that allows your to make the minimum payments on all of you debt. Getting up to date and making timely payments on debt is the best way to qualify for loans with better interest rates and terms. Furthermore, once this budget has been created, it will be much easier to choose which loans that any extra money that comes in should be applied to. This budget will also give you an idea of how much money you will need to get out of your debt.rnrnPrepare a budget and stick to your budget, keep an eye out for a practical approach for your budget to work out debt solutions. One of the best techniques is to make a list of all the debts amount-wise in ascending order- the least owed amount at the top and the most owed at the bottom. Pay off the one on top of the list first and keep paying off one by one all the debts on the list. This may help you plan your budget in a way that you can pay off the debt and at the same time run your house. You will soon lead a debt free life. Eliminating things you don’t need from your monthly budget is another way to get extra money.rnrnNext, I would recommend you start by paying off the high interest rate card first. Determine the total amount you can afford to pay each month on your cards. Make some sacrifices in your spending now to get that amount as high as possible, and you will be out of debt quicker. Subtract the minimum payments for all your other cards, an