 Credit Card Debt Freedom is Right Around The Corner My Friend, Credit card debt have you drowning financially? You're not alone. The average American household carries $9,205 in credit card debt, according to CardWeb, an online industry tracker. Not managed properly, this debt can come to eat up all of your disposable income leaving little or nothing for bare necessities. This can happen in as little as 4 months. Some people in this situation respond by charging more but that will only get you further in trouble the worst time of year for this to happen is usually the months leading up to Christmas and shortly thereafter.. Fail to plan and you plan to fail
There is this cliché that states that if you fail to plan you
plan to fail. The first thing you need to do is evaluate where you want
to be. Do you want freedom from your credit card burden? would you like
to save extra money for a down payment for that home you have your eye
on? or how about getting rid of your car and upgrading to the one you
should be driving. If so, you need to develop a different action plan
to the one you are currently following. Makes sense doesn't it?Start by listing all of the debt you currently owe along with a list of what your monthly expenses and obligations are for each debt. At the top of the page, list the amount of income available to pay these debts after essentials like food, hydro, etc... are taken out. When listing essentials, it's important to include a certain amount for clothes, medical and entertainment because no matter how good and sharp your intentions, you will spend some money in these areas as it is a matter of human nature for the most part. If you budget ahead for them, you are less likely to just waste it. Start
paying one credit card first
Don't try to pay off all of your credit cards at once. Doing this will take too long and end up discouraging you. You're better off concentrating on getting one card paid off, then putting the money you've freed up from that one card and applying it to the next one and so forth. Which credit card charges you the highest rate of interest? Start with that one. Pay the minimum due on all of your credit cards expect for the one you have chosen to focus on first. On that card, put as much money as your budget allows onto the card after all of your expenses and debts have been factored in. Keep doing this month after month until the credit card balance goes to zero. Loose all
credit cards except one
Plan to keep one major credit card for unexpected expenses, car rentals and emergencies. The usual limit you should keep your card at and have it manageable for you is around $3,500 - $5,000 Dollars.depending on the size of your family and current income living. Get rid of all your other cards as you pay them off. Most people can't resist the temptation to spend money on a clean card. If this describes you, you're better off without many credit cards than you are to get right back into deep credit card debt. As I have seen many people clean there credit up, only to fall back into a worse position than they had started, through no fault of their own. They just didn't want to follow advice and follow a very strict and proven formula. Follow this plan, and depending on how much you owe, in a year or so, you should have pretty much achieved credit card debt freedom! Peter Parks is a consultant and owner of niche-profit-marketing.com a website dedicated to helping people with credit card debt, debt consolidation, getting out of debt and becoming financially literate while providing inside rich content on the credit industry. Expert Consultation is given by private appointment. For More Information Please feel free to subscribe to niche-profit-marketing's newsletter. all fields marked with an * are
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