Credit card debt elimination may sound almost impossible for credit card holders especially when everything seems to be a bad choice to make in the present situation while they are desperately seeking a way out of their misery permanently. However, there are some suggestions that I would make here as a way out of the debts.
In order to deal with the credit card debts, you must first organize all of your debts information accordingly by writing everything in a piece of paper. The reason why am I asking you to write the information is because by doing so, you will able to see how much of money that you have owed from the credit card usage and also the interest rates that you are charged with.
Since you know more about your debts in detail, this is the right time to come up with a plan if you are really serious in eliminating your credit card debts. First of all, list down all of your monthly expenses excluding your monthly payment for your credit card and sum them up altogether.Next,deduct the total of your monthly expenses with your monthly earnings and there should be some extra cash that you could put into your credit card debts elimination plan. Be sure to keep some of the money for emergency purposes and use the rest of the money to pay off your credit card debts. In case if you are having less money to pay for your credit card’s minimum monthly payment, you may consider to cut down some of the monthly expenses in order to execute your plan.
By assuming that you are having multiple credit cards and you are paying the minimum monthly payment for all of them, it would be easy for you to put the credit card elimination plan that I am going to show you into action. At first, you need to find out which one of the credit card that you are using has the highest level of interest rates and then, let’s say that you have some allocation of money to be paid for all the credit cards which is assumed as $400 per month. However, the total amount of all the credit card’s minimum monthly payment is assumed as $300 per month and from the information, you should have a balance of $100.
Therefore, I would like to suggest that you should use the remaining $100 to pay off the debts of the credit card with the highest interest rates. Once you have cleared the debt of the particular credit card, repeat the same formula to find out the highest rates of interest of the remaining credit cards and clear your debts. Repeat this process until you have succeed in your credit card debts elimination plan.
Once you had settled all of your credit card debts, you can keep the money that you have allocated for your credit card debts in the bank for your future planning. By now, you would have accomplished an important mission in your life and you should enjoy the moment by giving some rewards for yourself.
