There is no way to miraculously becoming debt free. Excessive debts incur over time. Which would mean that your patience and commitment is required when trying to reduce and subsequently eliminate credit card debts. Average American households have about $8,000 worth of cumulative credit card debts. But this is nothing compared to the balance owed by other individuals. Due to high finance fees, credit card companies make it impossible to payoff the debt. But it is possible for you to mitigate your debts. So if you are trying to eliminate your debt, here are just a few ways you can do so.
Only Make Purchases With Cash
It's easy for any Joe Q. Public to claim that he wants to be free of debt. However, any Tom, Dick and Harry can talk all they want but not walk the talk as they use their credit cards for baffling purchases. With today's moral compass pointing in all sorts of directions, wants and needs can easily be confused. In order to fulfill a want, people regularly go on shopping sprees, vacations, and eat out using their credit cards.
It makes perfect sense, doesn't it - you eliminate credit card debt by not using your plastic. But do NOT misconstrue this with canceling your credit card accounts. Sure, you can cut your cards in half, keep them where you cannot easily access them or even throw them in a bonfire, but do not close your accounts. It is not the easiest thing in the world to do to break the credit card habit. But if you develop the habit of using cash for all your purchases, you will find your dependence on plastic significantly reduced, as would your debt.
Get a Personal Debt Consolidation Loan
There are advantages and disadvantages to debt consolidation loans. For the pros, these are loans that would give you a chance to take advantage of debt consolidation at a low rate and fixed terms. It's a no-brainer, really - a personal loan with an interest rate of 8 to 9 percent is much easier to pay off than a credit card that charges you interest rates of about 20 percent minimum. So instead of taking two or three decades to get out of debt, you can potentially become debt free in just about five years.
Unfortunately, there is a downside to debt consolidation loans. Some people with terrible spending habits may accumulate more debts once their credit cards are paid off. Debt consolidation loans are around for a reason, and that is not to free yourself up to incur new debts. These people pay for their frivolity in the end, as they end up in even more dire financial straits due to even larger debts.
Transfer Balance to a Zero Percent Credit Card
One method for quickly paying off credit card debt involves transferring the balance from a high interest credit card to a zero percent interest card. Your minimum payments go mostly to the principal and not to the finance charges if you are paying off a card with high interest. In other words, your balance doesn't go down. Zero percent interest cards, however, give you some time to avail of the zero interest. So in that sense, all your payments will be going towards the principal.
Only Make Purchases With Cash
It's easy for any Joe Q. Public to claim that he wants to be free of debt. However, any Tom, Dick and Harry can talk all they want but not walk the talk as they use their credit cards for baffling purchases. With today's moral compass pointing in all sorts of directions, wants and needs can easily be confused. In order to fulfill a want, people regularly go on shopping sprees, vacations, and eat out using their credit cards.
It makes perfect sense, doesn't it - you eliminate credit card debt by not using your plastic. But do NOT misconstrue this with canceling your credit card accounts. Sure, you can cut your cards in half, keep them where you cannot easily access them or even throw them in a bonfire, but do not close your accounts. It is not the easiest thing in the world to do to break the credit card habit. But if you develop the habit of using cash for all your purchases, you will find your dependence on plastic significantly reduced, as would your debt.
Get a Personal Debt Consolidation Loan
There are advantages and disadvantages to debt consolidation loans. For the pros, these are loans that would give you a chance to take advantage of debt consolidation at a low rate and fixed terms. It's a no-brainer, really - a personal loan with an interest rate of 8 to 9 percent is much easier to pay off than a credit card that charges you interest rates of about 20 percent minimum. So instead of taking two or three decades to get out of debt, you can potentially become debt free in just about five years.
Unfortunately, there is a downside to debt consolidation loans. Some people with terrible spending habits may accumulate more debts once their credit cards are paid off. Debt consolidation loans are around for a reason, and that is not to free yourself up to incur new debts. These people pay for their frivolity in the end, as they end up in even more dire financial straits due to even larger debts.
Transfer Balance to a Zero Percent Credit Card
One method for quickly paying off credit card debt involves transferring the balance from a high interest credit card to a zero percent interest card. Your minimum payments go mostly to the principal and not to the finance charges if you are paying off a card with high interest. In other words, your balance doesn't go down. Zero percent interest cards, however, give you some time to avail of the zero interest. So in that sense, all your payments will be going towards the principal.
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