How To Pay Credit Card Debt Off

If you are determined to pay credit card debt off you are making the best financial decision of your life. The reason credit card debt is so bad is because it carries such a high interest rate.

The quickest way to take back control of your finances is to pay credit card debt down or get rid of it completely. Here are the best and quickest ways for total credit card debt elimination.

Eliminate Credit Card Spending

You must immediately eliminate credit card spending because you will never pay credit card debt off if you continue to add to the outstanding balance. The interest on that debt added with a climbing balance will make it impossible to ever pay off.

Pay More Than The Minimum Payment

Always pay more than the minimum payment on the credit card you want to eliminate first. Paying the minimum payment makes you keep paying that high credit card interest rate. That's exactly what the credit card companies want because they are making a fortune off of that interest.

The best way to pay credit card debt off is start paying off the credit card with the highest interest rate first. Pay the minimum monthly payment on the others. Once each card is paid redirect your funds to the next highest interest rate card so you can eventually get rid of credit card debt.

Snowball Debt Payments

Snowballing debt payments means to transfer credit card debt from a high interest rate card to a low interest rate card. By doing this you pay a greater amount of money towards the balance and less interest on debt.

This increase in the amount of money you pay toward your outstanding balance allows you to snowball your efforts and pay credit card debt off quicker. It's worth looking at each individual card and determine how much interest you are paying with each of them.

Renegotiate With Creditors

Contact your credit card company and ask for a lower interest rate. They may want your business enough to lower it. The interest savings to you will multiply your efforts to pay credit card debt off quicker.

One last tip is, if you choose to close your credit card accounts, do not close them until after the final bill has been paid. Some credit card companies will penalize you by raising your interest rate if you close an account that carries an outstanding balance.

If you are ever going to get rid of credit card debt it's important to set a realistic budget for yourself. Lower your spending in all areas so you can pool your available cash to pay off your balances quicker. Think of how you will feel when you pay credit card debt off and you are finally free of high credit card interest.

Credit Card Debt Consolidation Tips

If you’re struggling with credit card debt and feeling frustrated and down, you are not alone. Credit card debt affects millions of people around the world – young and old. The good news is that filing bankruptcy isn’t your only option for controlling your financial situation. In fact, a good credit card debt consolidation loan program can be just what the doctor ordered when you are trying to heal your credit card debt. However, if you don’t know the rules of the game and rush off and join the first debt consolidation loan program you encounter, you may pay far more for than you would have if you had not consolidated your credit card loans in the first place. In this article, we will help you successfully consolidate your credit card debt and obtain debt free status sooner than you ever imagined. Sound interesting? You bet. Here are some proven tips you can use right now:

1. Choose the best debt consolidation loan program. Your debt consolidation program should have a solid reputation. To find an established company, contact family, friends, nonprofit consumer advocacy groups or independent review boards. Once you find a suitable prospect, make sure that your prospect has a good deal of solid financing, clear loan terms and conditions, equitable rates and provides you with safe way for you to do business. Lastly, check it out thoroughly before you sign on the dotted line.

2. Understand your debt consolidation loan terms. In short, read the fine print. Some loan programs will hit you with costly prepayment penalties if you try to pay off your credit card debt consolidation loan obligation early. Also, you should know if there is a minimum length of term stipulated or if you can adjust the term as your financial situation and credit score positively changes.

3. Know the difference between a fixed or variable rate and obtain the best interest rate for your situation. A variable loan rate may start out low, but within a few months may grow three times or more. A fixed loan rate is just that - fixed. It is not going to change; with this option, you can plug the payment amount into your monthly budget and know just how much you owe each month as it will not change for the life of that loan.

4. Be open to other options. Although credit card debt loan consolidation programs are great, they are not for everyone. To determine if it is right for you, you must review the credit card bills that you want to pay off and compare it to your consolidation loan and the interest on the loan to determine which is the better option. For instance, let’s say that your new consolidation loan not only has a higher interest rate than your combined credit card payments but enables you to spread the payment out over a longer period of time. However, when you do your calculations, you find that the consolidation loan will cost more over the long haul (even though your initial payments are less). In this instance, it might be a better idea to bite the bullet and pay off the debt with a second job, negotiate your repayment plan with your original creditors, etc. The key is to remain flexible and don't close yourself off to other viable options.

5. Don’t incur more credit card debt. Once you consolidate, pay for everything in cash or use your debit card (which is like using cash). This way, you won’t be tempted to add more credit card debt. Instead, you can avoid temptation and concentrate on chopping away at existing credit card debt. By doing this, you won’t get yourself into financial trouble again and will be even closer to getting out of debt and enjoying financial freedom.

In conclusion, credit card debt consolidation loan programs can be a wonderful way to get out of credit card debt and obtain financial freedom. Although credit card debt consolidation programs are not for everyone, they do make a viable option for some. The key to ultimate success is to know your options, choose the right consolidation program, obtain best rate, understand your consolidation terms, and not incur more debt. Once you do this, you’ll find a debt consolidation loan program that is perfect for you!