Archive for October 16th, 2009

Credit Card Debt Elimination in 3 Easy Steps

Friday, October 16th, 2009
muellerduran


The average credit card debt on American household is rising every year. The credit card debt statistics showed that in the year 2002 average credit card debt, on an American family having at least one credit card was roughly around $9000. No doubt, this problem is gaining epidemic proportion and threatens to rip off the economic and social fabric of the American society. The efforts to eliminate credit card debt can get a big boost if you follow a systematic approach. With the 3 easy steps listed below you can easily get out of credit card debt. Though, not easy in the beginning, this strategy will help you pay off credit card debt if you are willing to work for it.

1. You will eliminate credit card debt– Make it a resolution

Put it everywhere, in writing. It could be your study, kitchen, toilets, your desktop wallpaper etc. The idea is to reinforce this thing, once you see it everywhere, your natural faculties will automatically work towards achieving it. If you are alone, who is suffering from this credit card debt then it’s ok, otherwise if you wish to slash the credit card debt collectively, everyone should agree to the task.

2.Reduce the number of credit cards, consolidate

Sit together, and think which credit cards you require, keep them, get rid of the rest. Ideally you should be having one, but diversity of activities in life demand more types of credit cards, so it should be a tradeoff between the requirements and the credit cards you have. If you have credit card debt from multiple cards, go for a credit card debt consolidation. The idea is to pay off credit card debt faster and in a more manageable way. Don’t relax and be sluggish with your credit card debt repayments.

3. Make sure that you spend less than what you earn

This is most important. If you are not able to live within your means you will be in debt- in one way or another. Budget out your finances and get rid of wasteful expenditure. Make weekly, monthly, quarterly and yearly goals. Don’t complicate things while budgeting. It is easy to get carried away while doing this exercise and if you are planning in group make sure to take care of the sensitivities of your partners. The idea is not to create conflicts, but to synergize and work towards becoming credit card debt free.

Adhering to these simple steps might look easy, but it requires a good deal of honesty and sincerity. The rewards of following these three steps will show in your credit report and financial prosperity.



Allison

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My Tips to Credit Card Debt Consolidation

Friday, October 16th, 2009
Uchenna Ani-Okoye


The benefits from Credit card debt consolidation, ‘Credit card debt consolidation’ seems to be the most talked-about term in the world of credit cards. It’s true that credit cards have been very useful and convenient for us and we, in fact, treat the credit cards as a necessity. However, with every good you have evil too. In the world of credit cards, ‘Credit card debt’ is that evil and ‘Credit card debt consolidation’ is often regarded as a medicine for treating credit card debt.

Anyone who has read any newspaper articles on ‘Credit card debt’ would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt which you hold on various high APR credit cards onto just one low APR credit card. Thus, the main benefit of credit card debt consolidation is realised in terms of APR reduction (and hence reduction in credit card debt growth rate).

This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation. However, credit card debt consolidation comes with few more benefits as well. Some of these credit card debt consolidation benefits are widely publicised by the credit card suppliers and some not so much:

1. Initial APR: As mentioned above, lower APR is the biggest benefit from credit card debt consolidation. Since credit card debt consolidation is used by credit card suppliers as a tool to attract consumers, they generally offer a 0% APR for a initial period of 6-9 months of you joining their credit card debt consolidation programme i.e. first few months after you get the new credit card.

2. Standard APR: Lower standard APR (i.e. the long term APR) is the other important benefit from credit card debt consolidation. Though not all credit card suppliers offer a lower standard APR with credit card debt consolidation some do design credit card debt consolidation programmes with good standard APR. These credit card debt consolidation programmes offer a trade-off between initial and standard APR rates.

3. 0% on purchases: This is another common benefit from credit card debt consolidation. The 0% interest (or some lower percentage) on purchases is offered as an incentive for credit card debt consolidation. This credit card debt consolidation benefit is again applicable only for a short initial period.

4. Easy management: This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit card) is the fact that you need to track and manage a lesser number of credit cards.

5. Other benefits: The credit card debt consolidation exercise might bring you some more benefits in terms of rebates, discounts and reward points (especially if you move to a co-branded card as part of credit card debt consolidation).



Roy

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