2. How to Cut Credit Card Debt
Most people have too much credit card debt. We've all heard that before, right? Only now it's gotten a
bit personal... right again? You personally have too much credit card debt and it's about to drive you
crazy. Reduce your debt now by following these steps.
1. Keep in mind that your creditor is probably very willing to work with you. It's in his
or her best interest to have you making some payment versus no payment. So here are a couple
of points to help you deal with your credit card debt.
3. 2. Contact your creditor and explain your situation. Ask for a lower interest rate or a repayment plan.
3. Stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them
out of your wallet or purse, do it!.
4. Pay off the cards with the highest interest rate first and work from there. How do you do that? Call the
companies and pin down exactly what rate you are actually paying on each card. This is called "Laddering".
Alternately, you can use a "Reverse Laddering" approach, where you pay your bill with the lowest balance
first, then the next lowest balance, and so on. This frees up more cash in hand to start chipping down the
higher balance debts you have. This method is effective because instead of paying small chunks of money
toward those high interest bills, you can throw large chunks of money at them, reducing the amount of time
needed to pay them off. Also, your attitude will be better because you see the results of your progress faster,
and therefore aren't discouraged as easily. You must be careful though, because sometimes the money you
pay on the higher interest is more than the money you free up each month when paying off the small
balances. Review your finances thoroughly, crunch the numbers, and see which method would be the most
effective for your situation.
4. 5. Keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card
debt by following the common sense steps outlined above. You can do it too. Good luck.
For more information visit the given source link - http://www.wikihow.com/Cut-Credit-Card-Debt
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