Debt elimination help

Credit card payments are designed to be paid monthly and lenders try to encourage people who pay off their debts by making the minimum payment low each month. In this way, credit card companies can make a lot of money out of consumers in high interest rates. Statistically, the results for the minimum on your credit card balance is nothing, indeed, the interest will quickly spiral down into more debt for you. Falling behind on credit card payments is very simple to do and can have serious consequences. At the first sign of trouble, you should seek help and try to get right back on track. Here are some tips:

Get your priorities right

You need to know where your priorities lie in order to eliminate debt. The first step is for your bills. Do not continue to spend money that you do not have! That means, stop using your credit card, most importantly, do not use your credit card to pay other bills out! You will not do yourself a favor by trying to consolidate your own debt, especially at a high interest credit card.

Begin by selecting your most important assets. Remember, there really is no need to carry more than one or two credit cards. You are going to create more confusion by collecting additional bills. Write down everything and keep what you buy with a credit card. You can always check the credit card company with a lower interest rate. If you have a history of paying your bills on time, they can actually hold it.

Make payments on time. The goal is to pay more than the minimum amount, even if you cannot afford much more. Everything is better than nothing. After you have paid off your unnecessary credit cards, cancel the accounts.

Get a game plan

 

If you really want to eliminate debt problems, you need to get a plan and learn how to make lifestyle changes. Consumer credit can help you afford to buy the luxury of the things that are not really needed and can definitely be lived without. However, the thrill of buying something that you do not have to pay immediately is there. You must evaluate, and then re-evaluate every purchase. Do you need it? Can you live without it? These are significant questions and answering them honestly will help put you back on the road to financial freedom.

The last thing you want is to borrow more money to try to become debt free, but there are few opportunities to get around this. For example, a home equity loan is often tax deductible and it is almost like we borrow money from yourself, if you own a home. The same applies for the loan against your 401k, you are borrowing your own money, but there are significant risks if you do not pay.

You must be willing to work to remain debt free after you have used these techniques in order to eliminate debt. If you do not want to take the risk, you can withdraw money from friends or family at low interest rates, borrow to consolidate and eliminate debt. Money is the number one dispute between the family and friends, however, this option should be used sparingly.