Saturday, August 9, 2008

Eliminate Credit Card Debt in 30 Days

You are in a boat overloaded with credit card debt, but they really do not remember what you bought? You're not alone. Most of us were in the same boat, but managed to grab the life raft before under. Arrears mounts quickly and sooner you get help, will be easier to put their feet on solid ground.

Many owners of small businesses and individuals trying to get help in the reduction of its obligations under the debt consolidation companies. Some may be useful for you, while others are better without you. Here are some solutions, you can do at their discretion, before seek outside help.

1. Acknowledge the problem all their credit card information together at the excel. Using a bank account or name, date accounts, credit, current balance, payment term, the minimum monthly payment and interest rates. In order to reduce the burden, you should know that your debt amount. There is a psychological advantage when you have all credit card debt before you, especially if you add all interest paid on these accounts.

2. Do not use your high interest rates on all cards to pay for these first. The average balance varies depending on the demographic, but the average interest rate for credit cards over 13%. Assess your average on all accounts in the excel. For example, if the average is 12.5% higher than anything that the rate of priority and must be paid first.

3. Start with a low interest rate credit cards and call their customer service and politely tell them that you were a consumer x number of years, and you want to be able to reduce interest rates. Ask if there is anything available at better rates. You will be surprised by how they respond to your request. The reason you start with low-rate first, to familiarize themselves with the process before proceeding on high. Negotiating credit card debt painlessly. Issuing companies will work as well with what you run into problems later down the road.

4. There is a simple way to consolidate credit card debt, using your low interest rate card. If your credit is not enough to consolidate all accounts then ask the customer service agent to increase its limit. The next step is to do a balance transfer from high to low cards.

5. Good decision to repay high interest balance is to apply for new credit cards with low introductory rate. It offers typically are mailed, but some of them advertised on the Internet. Slow and sometimes 0% interest rate, usually good for at least six months. The transfer of that high interest rates to balance the new map. But remember, only do so once. Too many new accounts will reduce your FICO score.

6. The best way to reduce the residue is to get debt consolidation loan from your bank. Just make sure that the interest rate lower than the national average on your credit card.

7. The best way to eliminate debt, credit card use home equity credit line and repay all of your costs immediately. The interest rate is usually much lower, typically, two points above or your mortgage. There are also tax benefits related to homeowners. Using this method, monthly payments will be less, but if you continue to payments the same as before, the principle would be retired in a shorter time frame. You will be outside the credit card debt your next billing cycle.

The most important thing to do when you start to eliminate credit card debt does not return to the same habit of charging everything on your credit card - no matter how good rewards seem.

A final decision is to use the debit card from your bank and only spend money that you actually have in your account. Save the credit on the day that you really need it.

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