10 Tips for Reducing Credit Card Debt
1. Surgery Plastic that is: If you’re serious about paying off your debts then stop using your credit cards routinely. No need to literally cut them up.
2. Green-Pay Cash: Carrying around a set amount of cash to use each week. You’ll make better decisions when you actually have to spend the greenbacks. You also have a preset time limit. When you spend all the money-you stop.
3. Backup is your Debit Card: You’re buying online and only plastic will do.-use your debit card-it’s money already available (savings/checking account). Sort of like go green. Your debit card can be use in an emergency for cash if you run out.
4. Leave Credit Cards at home: Store the cards in a place that’s not easily accessible-
in a zip lock bag in the freezer, home safe, safety deposit box or my favorite is in a tupperware container and store inside the toilet tank. You need to enforce the cooling off period on new credit card purchases.
5. Don’t close the accounts: If you have unused credit available from lenders with whom you’ve had a long standing relationship it will help boost your credit score.
6. Consider Balance Transfer: Look for offers with a 0% introductory rate for a full year or relatively low rates. There after (13% or less) and no annual fees.
7. Let’s Make a Deal: Contact your current card companies. Explain that you intend to transfer your balance to another issuer unless your rate is lowered.
8. Tackle those Balances: Develop a plan for paying off your existing debts.
9. Figure out what you owe: make a simple table listing the amount you owe from your statements. The minimum payment & interest rate for each card. This should help you determine in which order you should pay off your cards. Always focus on the highest rated card first. Pay as much as you can each month while making only the minimum payment on your other cards. Remember the Cardinal sin of debt management is late payments. You will be slapped with large late fees, penalty rates and your credit score will take a hit.
10. Go in Order: When the first card is paid off, use the same method on the next highest rate card and keep going until you are debit free.
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