Here you can find credit card debts management, how to getting out of credit card debt, debt consolidation, debt management, pay off credit card debt, credit card debt reduction, debt consolidation companies etc.

Credit Cards are now the biggest and most profitable commodity ever. Its most profitable than oil. Consider this simple thing’ Bank gives you $ 5,000 and they want $ 30,000 pay it back.

Here is the way the bank charges you. Let’s consider you have $ 5,000 card and APR 20% that means bank charges you 20 % of $5,000 that is $ 1,000 interest per year on that credit card and the bank charges you in monthly basin not in yearly basis then it comes $83.33 Cents. Now here is the slide up hand, bank calls that finance charge not like interest. Its revolving credit, this means that bank has the autonomy to decide what the minimum amount of they will accept on that card each month they put it 2% and 2% of $5,000 is $1,00 is the minimum payment finance charge $83.33 Cents the amount applied is $16.67 Cents. You can find your monthly interest rate by

MINIMUM PAYMENT / FINANCE CHARGE so in the above scenario you have to pay 83.3% interest on your card when you purchase anything.

Like that you where in big trouble in paying those card payments so now its time to getting out of credit card debts here are the steps.

Step 1.

Make list of all your credit cards with the minimum payments

Interest rates and credit balances.

Step 2.

Determine how much extra you can pay every month towards those extra balances with still making the minimum payments for all the other cards.

Consider the example below

Example :

Card #1

• Balance - $100.00

• Minimum Payment - $10.00

• Interest Rate – 28%

Card #2

• Balance - $3400.00

• Minimum Payment - $125.00

• Interest Rate – 19%

Card #2

• Balance - $750.00

• Minimum Payment - $35.00

• Interest Rate – 22%

Here you can pay it off the first card and how it works

For Card #1

Balance - $100.00

Minimum Payment - $10.00

Extra payment to pay off - $90.00

So for that month we will pay only the first card payment to pay that card off.

Then you can take the next highest balance card and do the same thing again

For Card #2

Balance - $750.00

Minimum Payment - $35.00

Total Monthly payment - $145.00

• Additional pay $100.00 monthly

• Plus $10.00 from minimum payment no longer necessary for the first card

• Plus $35.00 minimum on this card

Thus the total payment for the second card is $145.00

Moving forward to our third card and here

For Card #3

Balance - $3400.00

Minimum Payment - $125.00

Total Monthly payment - $270.00

• Minimum payment to make $125.00

• Plus $145.00 from total payment no longer necessary for the second card

Thus the total payment for the second card is $145.00 + $125.00= $270.00

ALTERNATIVE OPTIONS

Pay off highest balance card first and work down from there

Pay off highest interest rate card first and work down from there