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5 ways to reduce credit card debt

March 27, 2012 by admin in Money

Credit card debt is often challenging to reduce due to high interest rates and the ease of using the card. Fortunately, it is possible to reduce the debt with a little planning and careful spending.

Ways to reduce credit card debt

Stop Buying on Credit:
Putting a stop to spending on the card is a key part of reducing the debt. Put the cards in a drawer at home or hide them where it is not possible to spend on impulsive purchases. Carry cash when planning an outing as the main means of payment instead of credit cards.

Analyze the Debt: 
The only way to reduce debt is understanding how much is owed to which creditors. Take a day to analyze the credit card bills and determine the necessary payments, debt amount and interest rates.

Pay the Minimum on All Cards:
Always pay the minimum on the cards and cover all other needed bills before trying to reduce the debt. This will prevent problems related to expenditures.

Pay the Highest Interest Card:
Put extra money into the credit card with the highest interest rate. Gradually work on paying off one card at a time to reduce the debt.

Consider Settlement Plans:
In the worst case scenario, if it is not possible to pay off the debt personally, it is possible to ask for help. Settlement can wipe out the debt if payments are no longer possible.

Reducing debt requires a plan and payments. Avoiding the use of cards and gradually paying as much as possible will result in lower debts over time.