Tuesday, December 30, 2008

Eliminate credit card debt: about credit card debt [Part2]

After you stop spending, you need to start paying. here’s how I did it. I didn’t make much money in my credit card debt days. I lived from paycheck to paycheck. When my credit card bill came, sometimes I didn’t have much money to send in, so I sent what I could. At other times of the month, I occasionally bad extra money. In the old days, of course, I would have spent it! Instead, I began sending money to my credit card company even when I didn’t have a bill due. I preaddressed and stamped several envelopes so I had them ready. Anytime I had extra cash in my checking account, I popped It in an envelope and kissed it good-bye.
Your savings account is another source. Sound sacrilegious? I get Into this argument with people all the Lime. I know lots of smart people who have a savings account and credit card debt. It’s ludicrous! I know, I know, you feel it’s important to save for emergencies. Trust me, credit card debt is an emergency. But here’s my less flippant explanation If your savings account yields 3 percent interest and your credit card charges 19 percent interest, you can instantly “makes a 16 percent profit” by using your savings account to pay off your credit card debt .That would be an impressive gain in the stock market! Then, instead of pulling out your credit card to make impulse buys, you can fall back on it in emergencies—a much sounder use for it.
If you’re deep in debt, try calling your creditors and asking if you can negotiate a more manageable payment plan. Some credit card companies may be willing to lower the interest rate for you. Others will let you make smaller monthly payments. This is exactly what a credit counseling organization would do for you, but it is possible to do it yourself.
You could also look for a debt consolidation loan, but don’t count on It. Reputable banks don’t make debt consolidation loans to people with no collateral. Crooked lenders may offer you a consolidation loan, but the interest rate will probably be higher than what you’re already paying on your credit cards. They’ll try to trick you by offering you a lower monthly payment than what you currently pay, but the loan will last so long that you end up paying far more money than you should have
If you own a house you may be able to take out a home equity loan to pay off your credit cards. This option sounds great because you can then deduct the Interest you pay on your tax return. But beware! Home equity loans come with closing costs, which just add to your debt. And if you miss payments, you could lose your house. LI you miss a payment on a credit card, you just lose your good credit rating.


Monday, December 29, 2008

Eliminate credit card debt: about credit card debt [Part1]

Between 1990 and 2001 the average credit card balance rose from $ 3000 to $ 7500th Credit card debt is a cancer (It's spreading in American households. I used to have this disease myself the malignancy started when I received my first credit card in college. Like many students, I was issued a credit card even though I had no job and no way of paying. I quickly racked up about $ 2500 in debt. My parents Balled me out. I racked up another $ 5,000 in debt. The second time I dug myself out, dollar by dollar. What an achievement! I can not tell you how good it feels to be free of credit card debt. Here are some strategies to help you liberate yourself too,
What I'm about to say may make you break out in a cold sweat. CUT UP YOUR CREDIT CARDS. Are you feeling the withdrawal symptoms yet? Credit cards give us a sense of possibility that we just do not have with cash. They allowed me to live beyond my means for years. But I paid for it. Just as an alcoholic can not drink a drop without Relapsing, a credit card junkie should not have any credit cards. Zero. Zilch.
You may argue that in this high tech age. It's Impossible to conduct business without a credit card. True, you can not pay cash when you shop online, and hardly anybody uses personal checks anymore. But if your argument in the flat face of debit cards. A debit card allows you all the convenience of a credit card, with all the limits of your own bank balance. It's an excellent substitute.
If you believe you must have a credit card on hand in case of an emergency, I've got an incredibly creative suggestion for you. Cut up all but one credit card. Then take the lone survivor and drop it in a Tupperware container full of water. Pop the container in the freezer and put your credit card spending on ice! This way you'll have to think about it for several hours if you want to use that card. You're unlikely to thaw this consumer culture ice sculpture to make impulse to buy. But if you have a true emergency, i will be there for you.
My financial planner boyfriend (now husband!) Put me on a spending freeze in my back Debtor days. I was not allowed to spend money on nonessential items. For me, that meant no new clothes, no home decorating, and no dinners out. Not using your cards anymore really is the first step in paying them off Most people who are in a credit card crunch charge their cards to the limit, pay the minimum each month, then spend right up to the limit again until they get their next bill.


Eliminate Consumer Credit card debt © Layout By Hugo Meira.