CruncheWorld

How to Pay Off Credit Card Debt

1. 11Credit is not the tool you think it is. Remember that credit card companies are in the business of making money. Adopting a “Cash is King” policy will go a long way in stopping your dependency on credit.
2. 2

   Stop using your cards. Literally freeze them in a block of ice if you need to. (Hanging a sealed bag of water, with the cards inside, is a fun and mess-free way of doing this.) Or, you can take your cards and cut them in to pieces with scissors, this way you are sure that you won’t use them again.

3. 3

   Look at your balance. Multiply it by .5. This is your next payment. So if you have a 1000 dollar balance, your first payment is 500.

4. 4

   Repeat step one. Each month look at your balance and pay off 50% of it. By the 6th or 7 month you will owe less than $20, and then you pay that off and you are done.

5. 5

   If you do this and then calculate the true interest that you end up paying, you will be pleasantly surprised. If our example credit card account had a 15% advertised rate, your would have only paid 2.5% in interest.

6. 6

   Track your spending, and find extra money to pay of your debt.Get an extra job,doing extra chores…

7. 7

   Stop spending money on the little things.For example: Don’t buy your books/DVD’s or CD’s just lend them from your local library. Don’t buy sandwiches outdoor, just make them at your home.

8. 8

   Stop spending and save more.Save every month a little bit of money, it may seem not that much, but its a beginning.

9. 9

   Look if you can put all of your debts together. This way you don’t have to pay all that extra rent to the bank,it will release your debts a little bit.

Thursday, July 15th, 2010, by admin and is filed under "Crunche World ". You can leave a response here, or send a Trackback from your own site.