Them Off Using Your Existing Budget!
By Ken Watson
There are many people that have been hurt by credit cards and their credit card debt. There is a lot of good advice on what to do about this type of debt. But the real issue is the card companies themselves. Be careful because a lot of them just want to milk you for all you have and pretend that they are there to help you.
Granted, charge cards can help you if you use them right. Credit card debt advice should be out there for people who really need it. In this article are a few bits of information to help you get out of the debt that you do not need.
It is really a shame that credit card debt advice is not taught in high schools. Financial advice is probably more important than chemistry or algebra or metal shop. From a basic level, here is what you need to know about credit cards.
Basically, it is an agreement with the credit card company. The bank or lender gives you a line of credit. At that time, this is the 'max' amount of credit that you will get. This credit is a 'loan' of sorts, and you are expected to pay that back in full, plus interest. When you do not pay back this credit, that is when you obtain debt.
So how can you get rid of your debt? The first thing you need to do is stop using them altogether. You need to prioritize, and for some people, really look at how you are spending money. You simply need to spend less than you make, sometimes considerably less.
You can also try getting a second income, for instance getting a second job. Also try to cut down on luxury items such as cable and going out to eat at restaurants. It is really important to take this monthly difference or surplus of money, and apply that to your credit card.
When you have multiple cards, here are the steps I would take to get rid of your credit cards.
1. Take your credit cards and put them in order beginning with the largest amount of total money owed.
2. Pay the minimum balance on all of the cards, except for the one with the smallest balance (note: this might not be the same as the lowest monthly payment). For this card, pay off as much as you can afford each month until it is paid off.
3. When that card is paid off, take that monthly amount that you used to pay down that balance and apply it to the second smallest balance, in addition to whatever you can apply to pay down the second smallest balance.
4. So when you pay each card, use that money towards the next card, do not spend that money just because you paid that card off. Then just keep working your way up until you get to the card with the largest balance.
When you get to the last card, you should have a large amount of money every month to put towards paying that card off. This will definitely improve your credit score as you pay down your credit card debt. This is advice good enough for anyone.
Article Source: http://EzineArticles.com/?expert=Ken_Watson
Them Off Using Your Existing Budget!
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