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How To Erase Credit Card Debts
Steps To Erase Credit Card Debts
You can erase credit card debt in very little time if you follow these 5 steps. I personally have eliminated all of my credit card debt and no longer own any credit accounts. It's a personal choice I made to assure that I never become dragged down my creditors again.
When I first got married I had no idea how difficult it could be to combine two incomes and 2 sets of debt. It was difficult because at the time it seem so overwhelming. Once things settle down, I was able to come up with a simple solution to pay off my credit card debts in just a few months.
Below are five simple and easy steps that you can use to pay off your debt without picking up extra hours at work or getting a second job.
1. Pull Your Credit Report
People always find descripencies on their credit reports. And if you're one of the lucky ones.... don't hold your breath because an error such as a late payment can lower your credit score. Erasing your credit card debt and clearing your credit report of errors should go hand and hand. In some cases it may take good credit to get out of credit card debt. With good credit you can do the following.
- Apply for a loan to pay off several cards at one time with one low rate.
- Consolidate credit cards by transferring the balanced over to one card. This can be negotiated with the credit card company.
Those two steps can help you get rid of debt by reducing the percentage rates and paying the debt back sooner the originally calculated . The monthly payment may be lower too!
2. Organize Your Credit Card Debt
You don't need special computer programs, a financial advisor, or any of the bells and whistles to do this. I used a calendar when I fist started. Coordinate your payments with your pay periods. If they don't match up, call the credit card company and request a a change in due date.
Hold yourself accountable by getting organized and being responsible for payments so that they will be made in a timely manner.
3. Pay Yourself First
I know this sounds crazy but you really need to budget your personal allowance in order to stay on track. You work hard and sometimes you want to play hard too.
You may not be able to play as hard as you once did but, scheduling in a monthly activity like bowling, or the movies may help elevate the temptation to overspend.
4. Arrange For Automatic Withdrawals
There are a lot of people that frown upon this but I truly believe that this is a great way to establish good credit. If you've consolidated your debts through a loan, having the payments taken out one time each month will increase your credit score.
5. Stay Out Of Credit Card Debt
Earlier I mentioned that I no longer own credit cards. This is a personal choice and I've done fine without them for the past 12 years! With credit/debit bank cards, I have control over my debt. My husband has a corporate card which has to be paid in full each month. Other then that, we use our savings, and extra income to pay for emergencies.
When you erase your credit card debt, you can easily fall right back into it if you aren't careful. If you decide to have credit cards.... just have one. Is there really a need to have 3 or 4?
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