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Zap Post-Holiday Credit Card Debt |
If you over-indulged on holiday treats, you’re probably trying to reduce your calorie intake. If you also over-indulged on your credit cards, you may want to reduce your debt, too. After all, just the interest on your credit cards may be 18 percent or more.
You’re not alone. The average American has at least seven credit and debit cards, and total credit card debt averages $8,000 per U.S. household.
Here are some proven ways to get out of credit card debt:
- Pay with cash only. Leave your credit cards at home so you’ll buy only what you can afford right now.
- Limit what you buy with your card. For example, stop using credit for impulse items and things you use up within a few hours, such as fast food meals and video rentals.
- Negotiate a lower interest rate. Many companies will lower your rate when you simply call and ask. If you do get a lower rate, keep paying based on the old rate so you can get out of debt quicker.
- Pay on time. Late fees can be as high as $25 or more and may cause your interest rate to go up. Paying early helps keep your credit report clean so you can get better rates on future loans.
- Use coupon savings. Track what you save through coupons and shopper cards. Then write a check for that amount and make an extra payment to your credit card company.
- Send more than the minimum. Even $10 more gets you out of debt months quicker and saves hundreds of dollars in interest.
- Pay off the highest interest credit card first. See which card has the highest interest rate and work to pay it off first.
In Yes, You Can … Achieve Financial Independence, James E. Stowers says, “If you spend more than you make, you are spending your future income.” So, for the new year, why not resolve to get out of credit card debt — and stay there.
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"Most folks are about as happy as they make up their minds to be."
Abraham Lincoln |
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