Pay Off Credit Card Debt – Eliminate Debt
The statistics on consumer debt is calculated by The United States Federal Reserve  and shows a total consumer debt reduction of 1% with revolving credit card debt down by 7% most recently. The average cardholder (not household) still carries an average of $6,500.00 in credit card debt and this is a major cause of problems for most people that have these large amounts or larger amounts of debt.
If you are one of the many millions of consumers that are carrying large amounts of debt and are feeling the burden and financial struggle that this is causing, you're not alone and there is help for you to eliminate debt once and for all if you are willing to make it a priority and work diligently at reducing debt.
Follow this plan to pay off all your plastic debt and eliminate it forever so that you can sleep better, have less stress and anxiety, have less family arguments, improved optimism for the future and have a lifestyle that you can enjoy. Isn't that what we all work so hard for anyway:)
Pay Off Credit Card Debt – Eliminate Debt
The first thing to do in order to successfully pay off credit card debt is to make it a priority in your life. Decide right now that you want to eliminate debt forever and know that this is a lengthy process but, will be so worth it when you can sleep soundly at night without the stress of debt.
Next, it's time to stop using any credit cards altogether. If you decide not to cut up credit cards, at least store the cards away in a safe place. Just do not use any plastic while you are trying to eliminate debt.
Now, gather all of your credit card invoices and check the balance, the interest rate, the due date and the amount due.
Are you paying the amount due that is reflected in the minimum amount or do you pay more monthly?
Use a credit card debt reduction calculator which can be found online. Put all your current figures into the calculator so that you can see how long this debt will take to pay off if you continue to pay just the minimums.
Make adjustments to the debt reduction calculator with newer figures that estimate what your payments would be with a lower interest rate. Save this figure so that you can try to work with your bank for a new debt negotiation plan.
Pay Off and Eliminate Debt
Decide how much you could afford to pay extra to the lowest card amount due. Many people suggest starting with the highest balanced owed but, this will take much longer to succeed and you'll still have the smaller balances to deal with. I like getting rid of those small amounts as a huge motivator! Using the lowest balance first as a stepping stone to pay off debt will give you the inspiration to tackle the larger amounts due later once one card is fully paid off and will give you one less debt staring you in the face!
Make a phone call to your lender and request a lower interest rate. You may be surprised that they will do this as long as your payments have been on time or if you can explain any new hardship such as loss of job, decreased hours in your job, new move, marriage problems or death in the family. Companies really do want to work with you, it's a matter of keeping them informed of your current situation. Try it.
If your payments have been late and you can explain a hardship, try to negotiate with the bank or lender on a new total amount due. They are often willing to assist you if your only other option to pay them is for you to file bankruptcy. In that situation, they would get none of the money owed them or at least very little in most cases.
Pay Off that Plastic Debt – Eliminate Debt
While you are working on making new payment arrangements with the credit card company, you'll also need to make other adjustments in your spending habits.
Get everyone involved in the family.
Find all ways to reduce spending so that extra funds can be applied to your debt. These could include:
Avoid going out to eat, packing lunches, carpool if possible, make your own coffee and water at home instead of buying it out, use the food in the freezer before buying new groceries, watch free movies on television instead of renting or going to the movies, cancel all magazine and other subscriptions, save electricity by turning off all unused appliances, keep the thermostat low and dress warmer at home and any other ways you can think of to reduce spending. You'll be so surprised after a couple of months at how the money starts to flow and you didn't really miss anything.
Find ways to make more money:
Get a part time job and apply all the funds to the credit card payments, have a yard or garage sale (many are now available online), sell unwanted or unnecessary items on ebay, amazon or craig's list.
Check your insurance policies and make sure you are only buying what you need or adjust your deductible. You may be able to reduce insurance payments to save money that can be used to pay off your outstanding balances.
Pay Off Debt – Eliminate Debt
Once you pay off the first credit card, work on the next highest balance owed. Getting rid of all small balances will inspire you to keep going so that you will only have one credit card left and can tackle that hardest one.
Keep going until you can eliminate debt and vow to use credit cards only for emergencies that may arise such as sickness or unexpected travel from a death in the family.
Consider credit card debt consolidation carefully since this option will extend the life of the loan causing you even more years of being in debt. You can do this yourself with the right determination and persistent focus with the end goal in mind at all times.
Avoid filing for bankruptcy since this will stay on your credit report for 10 years and can affect your ability to obtain a new home, car or other loan and even potential employment.
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