Reducing Credit Card Debt

If you have a serious problem with credit card debt the first thing to do is to make a decision to stop spending.

Start out with a simple budget. You need to have a strategy which allows you to pay off existing debts without accumulating new ones. This may not be too pleasant and could involve cutting down on the luxuries of going out, new clothes, holidays etc.
However the final budget must enable you to cover every day expenses as well as slowly repay other outstanding debts.

Make payments as often as you can without waiting for your monthly bill.
This is important. If you make regular credit card repayment throughout the month you will find that there is less of a chance that you spend your money while waiting for the credit card bill to arrive.

Use a Debt Card instead of Credit Cards.
Try to consolidate your cards and cut up as many cards as you can. Once all debt is paid out just get used to using a debt card – this way you can never spend beyond your means.

Take advantage of interest free offers for balance transfers.
If you focus you will be able to save and pay off your cards sooner just by consolidating all outstanding cards into a single card with such an offer.

Consolidate Cards into your Mortgage
If you are a home owner, this is the most effective way of reducing debt. Simply speaking, you can start paying home loan interest on your unsecured debt. Also in doing so you are able to spread your credit card debt repayment over 20 plus years – making monthly repayments far more affordable.





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