Eliminate Credit Card Debt
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| Eliminate Credit Card Debt |
If you are looking to eliminate credit card debt, which has already reached 50% of its target because its decision to eliminate credit card debt is the first and most important step you will be able to remove credit debt. That said, it is important to mention that you also have to be firm in this decision and stick to it with complete sincerity and seriousness, and finally eliminate credit card debt (and even after that).
To eliminate credit card debt, you need planning. This starts with analysis of current situation in terms of your debt and your finances (current and as expected in near future). So to eliminate credit card debt, you need to first check the amount you owe on various credit cards. Just use a notebook to note down the amount you owe on each credit card and the corresponding APR associated with them. Once you have this information handy, you can total up the various amounts to get the total amount of your credit card debt. After all, you can’t eliminate credit card debt if you don’t know how much it is actually. The next thing is to see if you have enough cash handy e.g. in your various bank accounts, which you can put to use to eliminate credit card debt (of course, you will need to take a view on how much cash you will need to fulfil your day to day and specific future needs). If you find that you have enough to eliminate credit card debt completely, just go ahead and eliminate credit card debt and earn your peace of mind. However, if you can’t eliminate credit card debt completely, check the amount that you can use to eliminate credit card debt partially. Next step, as you must have guessed, is to check how best you can use this amount to eliminate credit card debt (even if partially) i.e. which portion of credit card debt should you eliminate first. So, first eliminate credit card debt on the credit card which has the highest APR and which is hitting you the most. Then eliminate credit card debt on the credit card which has the next highest APR and so on and so forth. If you are incurring additional late fees etc on some of your credit cards, you might decide to reserve some amount to make minimum payments on those credit cards (before you finally eliminate credit card debt on them).
What we have seen is only a basic analysis and first steps on how to eliminate credit card debt. You may have to take some other steps to eliminate credit card debt eg consolidation of credit card debt is a good choice. However, it is imperative to understand that the methods of each and every one to eliminate credit card debt will fail if not inculcate controlled spending habits.
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