Credit Card Debt Reduction: Do it Yourself Tips

                                                                                         

Anyone who's ever owned a credit card, taken out a student loan, financed a car, or paid a mortgage has gathered debt. Debt can feel like a deep pool, but you don't have to drown in it. All you need is a little common sense and some solid budgeting. Remember, you own the debt – it doesn't own you. Here are a few tips that can help you get credit card debt relief you seek. It's like a “do it yourself” debt relief strategy, if you will.

HELPFUL TIPS FOR CREDIT CARD DEBT RELIEF

1. Trim your spending and learn to budget
Try to follow your spending for one week. Even one day's tracking can be helpful. Pay particular attention to where you're letting your money go, apart from your bills, rent, mortgage, car payments, and groceries. Watch where your money goes, and then you can decide where you can make some reasonable cuts.


2. Start to pay down your current credit card balances
Commit to making a monthly payment at least a little above the minimum balance due (5%-10% is best, if you can afford it) for each credit card. Make those payments religiously, even as your minimum payments go down. You'll pay off your credit cards sooner, and after they're all paid off, you can use that monthly amount towards other debt, or even savings goals! But your first step is your current credit card debt reduction goal. Stay committed!


3. Never spend more on your credit card than you can afford to pay off each month
Think of it as the key to getting out of debt. As hard as it is to put off buying that sleek new gadget or new couch, you must only charge what you can reasonably afford to pay off completely when the credit card statement arrives. Treat your credit card like cash. That way, you can simplify your spending without paying the ridiculously high interest rates on things you can't really afford anyway. It takes self control and discipline but this debt relief strategy will work.


4. Use debit cards as much as possible
Another way to help yourself with credit card debt reduction is to stop using your credit cards while you are trying to pay them down. Use bank debit cards instead. You can get them from your bank and they are tied right into your bank accounts, thus forcing you to budget more carefully.


5. Carry cash for the small incidentals that come up
Like the debit card tip, this one really makes you realize where every penny you spend on a day to day basis is going. Give yourself an allotment each day within your budget to spend in actual cash, and it will make you stop and think “Do I really need this?” If the answer is no, don't buy it. Instead, put it towards your credit card debt relief funds.


6. Pay off your highest interest rate credit cards first
If you work to get rid of the credit cards that have the highest interest rates first, you can save hundreds of dollars (or perhaps even thousands of dollars over time) before you tackle the ones with the lowest rates. And remember to faithfully pay more than the minimum due, if at all possible. This is one of the most important credit card debt reduction strategies, because it does not cost you anything extra to focus on putting your payment dollars to just “the right spot”. Attack those high interest rate cards!


Remembering and “sticking to” these six helpful credit card debt reduction tips will put you on the bullet train to getting out of credit card debt. The key is not to abandon the good habits. It's tempting, especially during the holidays, or special occasions, to break one of the rules. The key to success with any debt relief strategy is commitment and persistence so that you can achieve your ultimate goal: credit card debt relief and enjoying your life “debt free”. Imagine how that will feel!

About the author:
Liv Worthington has worked in the debt management field for many years. Liz suggests that you might first attempt credit card debt reduction on your own. See if you achieve credit card debt relief with your self help debt relief strategy before contracting with a professional debt service.

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