Today everyone carries credit cards and credit card debt is becoming a headache for Americans, and it's human nature to ignore the problem until it takes serious shape and proportions. How to take control and eliminate credit card debt before it threatens mental peace?
The solution lies in the way you use use your credit cards. Although credit cards offer convenience you have to understand that these are financial tools provided by banks and financial institution to make THEM wealthy and NOT you! The earlier you understand this fact better will be chances not to be in credit card debt. I will even tell you How to MAKE money from Credit Cards!
To eliminate credit card debt at the earliest possible by paying the minimum, I recommend using a simple (better said than done!) credit card debt elimination method often recommended by experts known as the Credit Crunch.
1. Make a list all of your credit cards with the details like remaining balance, the interest rate, and the minimum payment percentage (usually varies between 2 and 2 1/2 percent monthly of your balance.)
2. Sort the list so the credit card with the highest interest rate is at the top and the credit card with the lowest interest rate is at the bottom.
3. Total the required minimum payments for all the cards. Come up with a monthly budget of how much you can pay apart from the minimum payments
4. Now pay the minimum balance on each credit card except the one with the highest interest rate for which pay the minimum balance PLUS the additional amount you've kept in budget. Make sure you are not using this credit card for future purchases.
5. Keep doing this till the credit card with the highest interest rate is get paid in full. Now consider paying the same way as for second credit card and keep paying the the minimum balance on all the other credit cards.
6. Using this method known as Credit Crunch your credit cards debt get paid slowly and steadily. To make the process faster take advantage of high competition in credit card industry. For example:
* Give a call to you credit card providers and request a lower interest rate. You may get some surprises here as competition is fierce and companies will go to any extent to keep the customers which is You! if you get lower interest rates it means you can eliminate your credit card debt in a quicker way!
* If any of your credit card companies are not willing to reduce your interest rate, search around (internet is the best place) for a new credit card that offers a favorable rate to allow you to transfer your balance.
If you want to make money from credit card, you have to be really smart in dealing with credit cards. Do the following:
1) Keep the minimum number of credit cards (usually 2-3 are fine)
2) Keep a track of due dates to do that schedule your payments using online banking and bill payment systems.
3) Always try to pay in full for credit cards before due dates.
3) Take advantage of cash back credit cards which offer cash back on your every purchase.
4) Dump the credit card if there is any annual fee required to maintain it.
5) Take advantage of reward points programs and use those points to buy useful things
6) Take advantage of special promos (e.g 10% extra discount using a particular credit card)
7) Don't ask for credit limit increments as it forces you to spend extra.
Use the above points to eliminate your credit card debt and make money from credit cards!
