Saturday, August 16, 2008

Proactive way to eliminate Credit Card Debt Quickly

People treat credit card debt as a disease. They do not worry about it until things get out of hand and threaten their lives considerably. How to eliminate credit card debt as soon as possible? If this question is bothering you, read on. In this article, a simple 3 step proactive approach to get rid of credit card debt.

Step 1: List and Arrange

List all your credit cards at a table with their details. The data to be recorded are the outstanding balance, interest rates, minimum payments and repayment dates. Arrange them in order of decreasing interest rates. Now you have a list with a credit card that most of the charges in their balances at the top. Skip to next step.

Step 2. Establish a payment schedule

Add up all the minimum payments on credit cards. In its monthly budget allocating money that is approximately twice the total comes after adding the minimum payment. Now, pay the minimum payments on all credit cards, except the card with the highest interest rate. For this credit card to pay the remaining amount of money allocated for payment by credit card. If the trouble to the various dates for repayment, repayment automate the process using his bank account.

Step 3: Remove all debts from one to one

Thus the final result will be the highest interest rate debt first, will now continue with the second highest rate card and so on. Each month they require less amounts of credit card debt as the elimination reduce debt.

To avoid the accumulation of credit card debt in the future, make sure not to spend too much. Keeping a track of high interest rate credit cards, and transfer your balance to lower interest rates or 0% intro APR credit cards. Do not miss out on repayments and invite sanctions. Try to pay cash for most of their purchases and stay within its budget.

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Eliminate Consumer Credit card debt © Layout By Hugo Meira.