Best Addressing Credit Card Debt
So, how do you reduce credit card debt? Well, you reduce credit card debt by preventing it from increasing and by paying off what it is currently. Simple, isn’t it?
Best Addressing Credit Card Debt
“Reduce credit card debt and eliminate it before it assumes a horrifying shape” – This is really the gist of the story.
So, how do you reduce credit card debt? Well, you reduce credit card debt by preventing it from increasing and by paying off what it is currently. Simple, isn’t it?
Not really. If it was that simple to reduce credit card debt, then we wouldn’t have had so many people with credit card debt related problems.
We would have been able to reduce credit card debt problems and finally eliminate them (or reduce them significantly).
There are all kinds of advice available on how to reduce credit card debt, but still nothing much seems to change. The problem still seems to persist and in fact, worsen.
However, it’s not that difficult to reduce credit card debt. As we just said, there is a lot of advice available on how to reduce credit card debt and the only thing you need to do is put that advice, on how to reduce credit card debt, to practice in real life.
Well, no one but you will benefit if you reduce credit card debt.
So the first step to reduce credit card debt is to prevent it from taking dangerous proportions. The 2 most important ways of implementing this step are – balance transfers and use of cash.
Balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce credit card debt by slowing down the pace at which your credit card debt is getting built.
It also provides you relief in terms of the APR being 0% for initial 6-9 months (and hence helps reduce credit card debt faster).
To reduce credit card debt using this mechanism, you need to transfer your balance from your current credit card(s) onto another credit card that has a lower APR than your current card.
Thus you reduce credit card debt by preventing it from increasing so rapidly.
The other preventive measure to reduce credit card debt is to use cash instead of card (as such, hard earned cash is difficult to get out of pocket as compared to just a credit card).
So you reduce credit card debt by not adding more to it. That is the simplest way to reduce credit card debt.
However, you can reduce credit card debt only if you stick to your resolution to reduce credit card debt; otherwise it will fail miserably.
Put All Card Debt Together And Pay Less
‘Credit card debt consolidation’ is a phrase that you must have come across many times. There are hundreds of sites with advice on credit card debt consolidation.
Every now and then your favourite newspaper will also contain an article or advise on credit card debt consolidation.
TV channels host discussions on credit card debt consolidation. Moreover, there are numerous consultants and companies that provide professional advice on credit card debt consolidation.
So what is this “Credit card debt consolidation” that everyone is talking about? Why is it such an important topic?
“Credit card debt consolidation” refers to consolidation of the debt on various credit cards into a single credit card (or a couple of credit cards).
Generally, you move from a higher APR credit card to a lower APR one. You might ask ‘why?’ If you look into how the vicious circle of credit card debt works, you will immediately understand the logic behind that.
Credit card debt grows in 2 ways. One is due to addition of new debt on account of fresh spends on your credit card and the second is due to addition of interest charges to the existing credit card debt.
The first one is due to your use of credit card but the second one is due to interest charges which are calculated on the basis of the interest rate or the APR applicable to your credit card.
So a lower APR rate means that your credit card debt will grow at a slower pace and hence switching over to a card with lower APR makes perfect sense.
The process of credit card debt consolidation is also referred to as balance transfer process (you transfer the balance or debt from one credit card to another).
The credit card debt consolidation (or balance transfer) offers are made even more attractive by the credit card suppliers by associating various benefits with them.
The simple logic behind offering these benefits is the fact that such a customer would be defecting from one of their competitors.
The biggest benefit offered by these credit card suppliers is 0% interest on balance transfers (or credit card debt consolidation).
This 0% APR is generally applicable for a short period of time i.e. 3-6 months, after which the standard APR is applicable.
Other credit card debt consolidation offers include things like interest free purchase for a short period, reward points, etc.
These credit card debt consolidation offers make the exercise of credit card debt consolidation even more logical and meaningful.
Credit card debt consolidation seems to be a good way of tackling the problem of credit card debt and that is the reason why there is so much of discussion on the topic of Credit card debt consolidation.P
Credit Card Debt Consolidation Help
Credit card debt consolidation is an option for those that find themselves with many monthly credit card payments to keep track of and payments that tie up a large portion of their available cash flow.
Credit card debt help can be found through a variety of programs offered in locations throughout the US.
These credit card debt help companies offer credit card debt consolidation loans, credit counseling, and debt negotiation services. The debtor can feel safe in knowing that credit card debt help is available, and resources are attainable.
Credit card debt consolidation loans are typically granted to homeowners in the form of a home equity loan. These types of credit card debt consolidation loans have a lower interest rate which in turn offers a lower monthly payment than other types of loans.
Credit card debt help companies recommend a homeowner first look to a home equity loan before applying for other types of credit card debt consolidation loans. When debtors have only one monthly payment to make on a loan, they can pay the debt off much faster than trying to juggle multiple payments from multiple lenders.
Credit card debt consolidation loans can be made through traditional lenders such as banks and credit unions, or they can be made directly through credit card debt help organizations.
These credit card debt help organizations have limited funding, are usually non-profit, and supply their funds on a first come first serve basis.
Swift action should be taken when applying for a credit card debt consolidation loan through a credit card debt help organization once the decision has been made.
All credit card debt consolidation loans require some form of credit card and debt counseling. Applying the methods learned in these counseling sessions will ensure that the borrower does not get into credit card debt easily again.
Interest rates for credit card debt consolidation loans through traditional lenders are based on the borrower’s credit score.
This credit score, if high, can allow a borrower to get a credit card debt consolidation loan at a lower interest rate. If the credit score is low, credit card debt help companies recommend raising the credit score before making application through a lender.
Unfortunately, the most effective way to raise a credit score is by paying down credit card debt. This is obviously not an option for those seeking a credit card debt consolidation loan.
Credit card debt help organizations will be able to offer alternative methods for raising an individual’s credit score.
Credit card debt
‘Credit card debt’ is a much discussed topic in the commercial and social circles. A big section of the population has been bit by this bug called ‘credit card debt’. Can’t blame them much; as such, it’s pretty easy to fall prey to this bug.
The main reason behind so many credit card casualties (rather credit card debt related casualties) is that many people don’t understand the concept of credit cards properly. They treat credit card as free money that is never to be returned.
Thus all the discipline, which would otherwise have been exercised with spending hard-earned money, goes for a toss. That means people overspend and get into credit card debt. They keep spending till they reach the credit limit on their credit card.
Some people go to the extent of treating that like a game and consider it a defeat (or consider their credit card under utilised) if they don’t hit the credit limit quick enough.
These unnecessary spends result in a situation where they are not able to payback their credit card bills and end up paying interest on the amount they owe.
This keeps building up their credit card debt and they soon find that the interest component has become a regular feature in their monthly expenses and it is there even if they spend nothing on their credit card.
That is credit card debt on the prowl. Soon they find that their current credit card can no longer handle their needs and start looking to get another credit card.
With the new power of credit, they let themselves loose again and follow a ‘shop till you drop’ routine. Soon the credit limit of the new credit card is reached too and they again default on payments.
This is how credit card debt builds. Soon they learn about credit card debt consolidation and other credit card debt elimination techniques.
They are quick to grab such credit card debt reduction techniques, but that’s not because they are serious about reducing their credit card debt but because of the attractive low APR offers. As if it were booty, they again get back to building up their credit card debt.
All the while they are spoiling their credit card rating and they soon realise that no one is ready to lend them money because of their credit history.
They can only get a secured credit card now (where you first deposit money into your credit account and then only you get the privilege of spending it (50-100% of it) using their credit card.
Credit card debt collection agencies, auction of their goods and bankruptcy is the next thing that hits them and their dream run is blown away in a moment.
The moral of the story – “Understand the concept of credit cards and treat credit card debt with all seriousness”.
Credit card debt reduction
Getting into debt is easy but getting out of it really a difficult task. This holds good for any kind of debt and includes credit card debt too. Credit card debt reduction needs planning and discipline in the way you spend money.
Credit card debt reduction starts with reduction in the expenditures you make using your credit card.
So, the first trick for credit card reduction is to go for shopping without your credit card (carry some small amount of cash).
This credit card reduction technique isn’t asking you to stop shopping, instead it’s just asking you to seriously evaluate the need of anything you want to purchase and not just purchase it on the spur of the moment.
So, if you really-really need to buy it, you will go back to your home to fetch your credit card thus introducing a delay that is instrumental in killing spur-of-the-moment purchase (and hence helping in credit card debt reduction).
It gives you time to evaluate if it’s really worth going back home and getting the credit card for purchasing that item.
So, in this case, credit card debt reduction is achieved by preventing the debt from building up further. It’s a very effective credit card debt reduction measure.
The other effective way of credit card debt reduction is debt consolidation i.e. consolidating debt from high APR credit cards to a low APR one.
So this credit card debt reduction measure works by reducing the rate at which your credit card debt grows. Moreover, this way of credit card debt reduction also gives you a breather in the form of a short initial period when the APR is 0%.
Besides credit card debt reduction, debt consolidation also brings some additional benefits which are basically in terms of rewards etc offered by the new credit card supplier.
Thus this method of credit card debt reduction is really more than just a credit card debt reduction method – it’s a benefit provider too.
If you are not comfortable in taking forward this method of credit card debt reduction, you can seek the help of a credit card debt assistance company.
Besides these two credit card debt reduction measures, which are really the most important credit card debt reduction measures, there are other methods too for credit card debt reduction.
Another one is to ask your current credit card supplier for help in credit card debt reduction i.e. by lowering the APR. It might work out for you (as it does for some people).
Also remember, that there are people (professionals) out there who provide advice on credit card debt reduction (just in case you need them).
Reduce credit card debt
“Reduce credit card debt and eliminate it before it assumes a horrifying shape” – This is really the gist of the story.
So, how do you reduce credit card debt? Well, you reduce credit card debt by preventing it from increasing and by paying off what it is currently. Simple, isn’t it?
Not really. If it was that simple to reduce credit card debt, then we wouldn’t have had so many people with credit card debt related problems. We would have been able to reduce credit card debt problems and finally eliminate them (or reduce them significantly).
There are all kinds of advice available on how to reduce credit card debt, but still nothing much seems to change. The problem still seems to persist and in fact, worsen.
However, it’s not that difficult to reduce credit card debt. As we just said, there is a lot of advice available on how to reduce credit card debt and the only thing you need to do is put that advice,
on how to reduce credit card debt, to practice in real life. Well, no one but you will benefit if you reduce credit card debt.
So the first step to reduce credit card debt is to prevent it from taking dangerous proportions. The 2 most important ways of implementing this step are – balance transfers and use of cash.
Balance transfer is often treated as the number one measure to reduce credit card debt. This is really something that can help reduce credit card debt by slowing down the pace at which your credit card debt is getting built.
It also provides you relief in terms of the APR being 0% for initial 6-9 months (and hence helps reduce credit card debt faster).
To reduce credit card debt using this mechanism, you need to transfer your balance from your current credit card(s) onto another credit card that has a lower APR than your current card. Thus you reduce credit card debt by preventing it from increasing so rapidly.
The other preventive measure to reduce credit card debt is to use cash instead of card (as such, hard earned cash is difficult to get out of pocket as compared to just a credit card). So you reduce credit card debt by not adding more to it. That is the simplest way to reduce credit card debt.
However, you can reduce credit card debt only if you stick to your resolution to reduce credit card debt; otherwise it will fail miserably.
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