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How to reduce credit card debt?

By Edited Apr 9, 2014 1 2

In this financial turmoil more and more households are pressed to reduce their credit card debt and diminuate the cost associated with them if they want to stay out of trouble. As we all know is very easy to get in debt by splashing with the 'plastic'. Lately, the trend for the credit card companies has been in either reducing the amount of how much you can spend on your credit card, either by obliging their customer of a minimum of payments that they have to pay per months.

The American Express made it clear that you have to pay at least 5% of your debt amount per months. For those with large credit card debt this is a huge amount and quite dangerously for you as you may risk lose your assets in case you missed a payment. So, how can you reduce your credit card cost in those circumstances?

1. Look at your credit card with highest interest rates and try to transfer the balance to another credit card with offer you a smaller interest rate or even zero interest rates. It is true that is harder due to the financial crisis to find such deals, but at least you should try. Accumulating such high interest rates for you is no good.

2. Try to pay off as much as you can from your debt and avoid paying just the minimum amount of your credit card debt. Otherwise it will take you years to pay it and you are at risk financially. Having a gloomy house prices means you cannot rely on your home equity for paying your debts.

3. Are you in heavy debt and still spending? Off course, there are persons like single parents, especially single mothers who rely on paying their bills on credit cards. It is quite a vicious cycle. However, if you think that you can live on without spending a fortune on things that you really need than you should restrain yourself from spending, especially with a credit card. Asking yourself before buying if you really need that stuff is very helpful. Also, I tend to not buy immediately the first time I saw a thing, I wait at least few days to think about it. Most of the times I realize that I don't really need that stuff anyway.



Jan 2, 2010 9:35am
Great advice.
Dec 7, 2011 11:21pm
Credit cards have become nothing more than a legalized racket. Thanks for the advice, some really good stuff here.
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