5 Ways To Eradicate Your Credit Card Debt

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Getting into debt is quite easy, but getting out of it can be downright impossible. But luckily for you there are ways to eradicate your debt. Here are the 5 ways you can get rid of your credit card debt once and for all.

Pick A Card Any Card

If you’ve got several cards with credit card you need to pick one card, just one card, and pay it off. Do not attempt to pay off all of your cards at once. If you do you’ll want to quit because you won’t see any progress at all. If you attack one card at a time you will get rid of your debts one by one. This will give you the motivation to continue paying off your other cards.

Which card should you pay off? Some say to pay off the smallest debt first. That way you have less and less individual debts. Others say to pay off the debt with the highest interest rate. If you do it this way you’ll get rid of the debt that’s hurting you the most financially. And yet others say to pay personal debts first such as debts you owe to your friends or family members. Whatever you choose be sure to just attack one debt at a time.

Negotiate A Lower Interest Rate

Did you know that you can get a lower interest rate just by calling your credit card company? That’s right, just call your credit card customer service department and tell them to transfer you to the retention department. Tell them that you want to cancel your credit card because the interest rate is too high. They won’t want to lose you as a customer so they will consider lowering your interest rate.

Will this actually work? It doesn’t hurt to try. If you are a good customer who makes your payments on time and have an improving credit score you have a good chance at having your rate lowered.

Utilize Balance Transfers Smartly

You’ve heard those credit card offers that claim to offer you zero percent interest before. Are they real? The answer is yes but there is a catch. First of all, the balances you transfer will not accrue interest for a period of 6 months or 1 year. After that, the interest rate is a very high rate (somewhere between 20-30%). Then if you miss a payment during your 0% interest period your rate will automatically jump to the high rate.

Don’t get turned off by 0% transfer balance cards just yet. You can utilize these cards to your advantage. You can transfer your high interest card debt into your zero interest card. The key here is to be sure to pay off all this debt before the change in interest rate occurs. If you do it this way you can save a substantial amount of money.

Make A Budget

Now that you know how to eradicate your credit card debt you need to set up a system so you will never get yourself into credit card debt ever again. To do this you need to control your spending by altering your spending habits. One way to do this is to create a budget so you can track how much you earn and how much you spend.

Don’t Add Anymore Charges

If you want to get (and stay) out of debt you need to stop accruing new debt. If you keep adding charges to the card you’ll never fully pay it off. So instead, cut up the credit card itself so you cannot use it in the stores any longer. Then only use cash to make your day to day purchases. If you do this you will eradicate your credit card debt in no time.