How to Eliminate Credit Card Debt


Although the credit card is very convenient for everyday purchases, it is not suitable for everyone. By taking the time to learn how to eliminate credit card debt, you will never have to worry about getting into debt again.

Here are the 5 easy ways to eliminate credit card debt:

Keep only a limited number of these cards

Just try to have a Visa, MasterCard and / or American Express, which can be used almost anywhere. Most people who have high card debts tend to be those who have too many cards in the first place.

Know the conditions of your credit card

Make sure you know the annual percentage rate (APR), interest rate of any outstanding balance, grace period, transaction fees and annual fees, if any. Read the fine print line by line. Understand how interest will be charged to your account, when fees will be charged to you and when your interest rate will go up. Knowing these features of your card can help you eliminate your debts.

Check if the interest rates are fixed or variable. Credit card companies need to make a lot of money assuming you will not pay your bills on time or in full every month. Therefore, check the rate of your monthly statements as they may increase your rates for no apparent reason or very little and without warning.

Create a list of your cards

First, list each of your cards. Include the outstanding balance, credit limit, interest rate and minimum payment. Second, arrange the cards from the list with the lowest interest rate at the top and the highest at the bottom. When faced with emergencies, you know which card has the lowest interest rate you can use to avoid paying high interest charges.

Buy what you need, not what you want

Because of the convenience of the cards, some people tend to use them as free passes to spend money they do not even or will not want to borrow, which is one of the main reasons causes people to pay for their credit cards.

You can avoid debt by buying only what you need and you can afford to pay, not what you want, unless your spending is on budget and you want to reward yourself from time to time. If you can not afford to pay in cash, you can not afford to bill it.

See, it is not so difficult to learn how to eliminate credit card debt. One last piece of advice: Always remember that for every item you spend, you must have enough money to cover it. It's as simple as that!

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