Top 10 Tips To Become Credit Card Debt-Free

Do you have credit cards and have a lot of debts, Is your main concern to be credit card debt free, Credit card debts are actually not a big problem as long as you know how to manage your finances correctly. Those who suffer from high credit card debts are those who lack control on their spending; thus leads them to be drowned in debts. Make sure that you have a clear picture of your debts by listing them. In this way, it reminds you constantly of your monthly liabilities to make you prepare for them before the month ends.

List the account number, your total debt for a specific card, interest rate and monthly obligations. You always get the money you pay your debts from your income so make sure to plan your budget carefully to give you more cash to pay your debts. It’s ideal to keep a budget worksheet to record your expenses.

Any excess in your budget should be used to pay your debts. For you to start paying your bills efficiently, you may negotiate with your credit company regarding lowering your interest rates. Some may seek help from debt management agencies, but you can always personally transact with your bank. Your minimum monthly payments only usually cover your interests; thereby not lessening your outstanding balance.

You may see that you are paying efficiently, but your balance does not seem to be decreasing because of this. To answer this, you must always have extra money to pay more than the minimum monthly fees. While you still have outstanding debts, you should not acquire new debts to avoid bringing back the cycle of being debt free and being drowned in debts. Use cash in purchasing instead of using your cards.

You may keep your credit cards to avoid using them, or never apply for a new credit card. Late payment fees usually add to your debts so make sure to pay your monthly dues on time. You can set-up an automatic payment plan to avoid late payments. If you have a lot of credit cards, you may want to consolidate all of your credits in one card. Balance transfers allow you to transfer your debts with high interest to lower interest cards.

You may even find a card with a 0% interest for a particular time so you are able to pay your debts without incurring new interest payments. Emergency funds help you avoid using your credit cards during times of sickness, car repairs, job loss and home improvements. Your emergency fund ideally should be 3 to 6 months of income. If you have very high debts, you may begin saving all extra cash you have (after paying your monthly debt dues of course) as emergency funds. The key to being debt free usually starts at becoming more financially responsible.

It should be noted that the more you spend, the less money you have or the more debts you acquire. If you cannot deal with your debts anymore on your own, you may seek help from debt management companies to help you negotiate for debt settlements or debt consolidation. Make sure to seek help only from credible agencies. Debts are really bothersome, but as much as we want to avoid it, we are the ones who acquired it on our own, so we must deal with them properly. By all these 10 means you get credit card debt relief.

Interest rates are charged on an annual basis, but credit card users are charged a percentage of that interest rate each month until the balance is paid off. Credit Card Balance Transfer: When you use a credit card, you always have the option to transfer the balance of that credit card to a new credit card with a lower interest rate. A credit card balance transfer is a simple way to avod paying interest on your credit cards.

However, make sure that the credit card that you transfer your balance to does not charge a fee for the balance transfer (or that your original credi card does not charge a fee). Don't forget the doing a balance transfer does not get you out of debt or mean you can avoid paying the money back. You will still have to pay back the money that you borrowed.

However, you may be able to avoid paying high interest rates with a lower interest rate credit card. Debt Consolidation: Many credit card users have too many credit cards that they need to manage, including everyday credit cards and credit cards for specific stores. To make your finances simpler to manage and create just one bill each month you could think about debt consolidation.

A debt consolidation program is a program through a third party that makes it possible for you to consolidate all of your credit card bills into one so that you can manage and predict your monthly payments. If you choose to use a debt consolidation program the company will create a repayment plan with a single monthly payment that should be affordable and within your household budget.

Ask for an Extension: If you currently have a credit card with a low introductory interest rate that is due to expire you should try calling them and asking if they will extend the offer. When a low interest rate credit card offer is set to expire, simply call the credit card company and ask for an extension.