How To Pay Down Your Debt Like A Pro!
Even if you know nothing about finances!
Using “plastic” to pay your way through life is a dangerous strategy. Yet for many people it is either the way of choice – or the only way! Either way, it can leave you out in the cold with a big amount of credit card debt to worry about.
The first thing you need to keep in mind is not to panic. Panicking will only make you spend more on things that you don’t need. You should always be emotionally stable even when you’re dealing with something this big and urgent.
Face the figures bravely: ask for records from each credit card
When you’re in debt, you need to look into the details of all your transactions. Debtors usually overlook the importance of verifying their credit card debt records. This is especially true if the sudden maxing out of your credit card comes as a surprise for you. When trying to get out of debt, you should keep a personal record of all your purchases. Then look at it every once in a while to give yourself a reality check. Then ask yourself:
Do you really need to buy all the things on your list? Or can you live without some of them?
While this might not make your debt disappear overnight, it will help you understand the importance of only buying what you can really afford. Over time this can significantly reduce the total amount you have to pay for.
Try to figure out a way to consolidate your debts
Some banks offer consolidation services. You need to watch out though because this could only end up making your credit card debt bigger. Consolidations are a kind of refinancing. Most debtors choose this option when they’re paying a bunch of loans and credit cards at a time. It’s best to seek the help of experts before making this decision.
If consolidating or grouping all your debts together in a single lump works in your favor, you can save up to 25% compared to paying for them individually. However, when you’ve not fully thought out this financial decision, you can end up paying for double or even triple your original debt amount.
And be careful not to use the extra money from your lower payments to build up MORE debt!
Put your credit cards on a time out!
There’s no way you can pay off your credit card debt by incurring another debt from another bank. It’s just plain crazy to think of it that way. Most debtors do this because they’re panicking, or because they’ve been misinformed. What your debt needs is real, cold cash. You better not start putting all your hopes up on “plastic” money that you haven’t even earned yet.
Instead, you should look for a way to generate more income. As much as possible, you should avoid using your credit cards as well during this time. It’s better for you to purchase things with real cash once you’re already having trouble paying for one credit card.
Figure out what strategy works best for you
If you can do this on your own, go for it! If not, seek professional help. It will be well worth your time and effort to get a handle on your finances as quickly as possible. If that means getting help, then by all means get help.
About the Author
Struggling with too much credit card debt? You're not alone! Learn how negotiating your debts can help you avoid bankruptcy and get out of debt for good! Learn more helpful debt relief strategies from www.debt-tips.com
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