Tips to Eliminate Credit Card Debt

05
January

Credit card debt can certainly be a burden, but you don’t have to waste away under that kind of stress. Plenty of people have gotten out of credit card, either using a debt relief program or by changing their ways a little bit. It is definitely not an easy process, though, so if you are going to make it all the way out, it will take a significant amount of work on your part. The best approach is to sit down and get a plan, because you cannot move forward with your debt elimination until you have a dedicated approach. These are tips to help you get that done.

Figure out if a program is right for you
There are debt settlement programs and debt consolidation programs that can work for some people. Though these are definitely not programs that need to be considered for every person with debt, they do serve a purpose. Settlement is a good option for people with really large, past due debts that should be knocked out with one swing. Consolidation is a nice option for people who are currently dealing with high interest rates on many different cards. It should be noted that these programs have some downside to them, but they can help you if your situation falls under certain parameters.

Take on high interest cards first
If you are in a significant amount of credit card debt, then chances are good that you have more than one credit card. This can create some challenges and some questions on your end. The most pressing of those is just which credit card to pay off first. Do I pay off the card with the highest balance or the card with the highest interest rate? The best policy is to start knocking off the cards with the highest rates, since these represent the biggest drain on your money. You should figure out exactly how much money you can dedicate to your total credit card debt, then assign the highest percentage of that to your high rate loans. From there, you will these off quicker and then you can move on down the line.

Applying for government grants
Though this is a somewhat unknown possibility, it is one that can really help if you are able to qualify and if you put forth a solid case. For folks who have suffered some sort of major financial hardship, debt elimination grants exist. This obviously will not work out for everyone, but that does not mean that you should neglect the possibility. Research all of the grants and see if there is something that you could potentially use. If you find something that suits your current financial situation, then the next step is to submit a grant proposal and wait your turn. If you are approved, the government will give you money to pay down your debts. This money does not require repayment, which makes it an especially juicy options.

Put a plan down on paper and stick to it
One of the hardest things to do in the financial world is to accomplish something without a plan. If you don’t know how long it will be until your credit cards are knocked out, then you will have no chance of paying them off. You need to figure out exactly how long it is going to take to pay them off, then you need to write out which payments need to be made each month. Once you have everything down on paper, it will be easy to stick with the plan. Even if your freedom from debt day is a long time in the future, you will still know that you are working toward a goal that can actually happen. This is much better than paying a little bit each month and hoping that you are making progress.

If you’re stuck in debt, then you are going to need to grow some tough skin. It is not going to be easy, but if you can stick to a plan and use some of the resources out there, then you can get out of debt before your financial future is ruined. Be prepared for ups and downs, but put that debt first and realize how important it is to eliminate it.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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