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Want Out of Debt
Getting out of Credit Card Debt
How to get out of credit card Debt.
What I would like to share with you is a method that I personally have used to get out of credit card debt twice. I call it the funnel system and it really works if you are careful and stick to the plan. It will also help to improve your credit score where it counts.
What you will need, which will make it easier, is an online bank account that allows you to pay bills using a direct payment method. If you don’t bank online you will need a way of making payments through a payment slip that comes attached at the bottom of your bills either through your own bank or the high street branch of the credit card provider. For instance if you have a Barclays credit card then you would be able to pay in at the local Barclays branch.
If you are using this method, the first thing you need to do is to make multiple copies of the payment slip that can be cut to the correct size when you need them. You then use these to make multiple payments each month. The key to this is making payments each week, whether this is online or off.
In preparation to get out of debt.
The first thing you need to do is to get a handle on your spending and make a promise to yourself that you will follow this through and get out of debt. Then you can start to build on your success and start to save money for a future investment.
This is how you start. For one month you keep a note pad and write down all of your outgoings. I mean everything, from a few pence to a hundred pounds or so. You write down how much you spend and for what and you put down where you spent it as well. This also means how much you pay on your bills as they come in. On this list you also write down how much you have as income and when you are paid and how much and also include how much is left if any at the end of the month.
Here is where it starts.
After this exercise you evaluate your spending and see where you might be able to cut back, make changes or cut out all together. This will help you in the long run. Then the next time you go out and spend any money, you need to ask yourself a couple of questions. Q: Is this a need or a want? Q: Can I really afford this? Q: Could this purchase be put off to another time?
Once you get a grip on your spending and evaluate how much you have going out as to how much you have coming in, you will then be able to recognise ways you can cut back.
When you have done this you need to start looking for credit card deals offering long terms of either no interest or very low interest. Preferably ones with no interest.
The next step is to look at how much you owe on each card and how many cards you have. Make a list of these and keep a record of how much you owe as they come in.
As an example if you have say eight cards what you should aim to do is to move each group of two cards balances to one no interest card and keep a record of when these offers end.
Once you have moved the balances over you have fewer cards to make payments to When those offers end you should look at other card deals that you can move those balances to where you can reduce the number of cards you are paying to again and repeat when the offers expires. This is the funnel part of the plan, which reduces each time.
When you get these cards you need to look at their methods of payment and if possible set them up in your online bank account where you can make direct payments. If you are not using online banking, you should be prepared to go to the places you need to make payments to each week and make it a regular schedule and stick to it.
Then all you have to do is to make affordable payments to them each week and where you can make the payments more then the minimum payment each time. This is why I suggest that you know how to handle your spending, because if you can get a grip on that then you will be able to pay more on your credit debt each time. The amount you spend needs to be kept in check so if you need to continue to write your expenses down to keep them in check then keep doing it and always look for ways you can reduce what you spend.
If you keep doing this method of payment it will also help to give you a better credit score where you may need it in future.
Wishing you the very best in your efforts.
© 2017 kevin0850