Credit Card Debt – Pay Until It Hurts
Getting rid of your credit card debt is not easy, but with the use of 0% interest balance transfer credit cards and a little careful budgeting, you can do it.
The most important thing to know is that minimum payments are not enough. Many people spend years paying the minimum amount due and wonder why they seem to always be just as deep in credit card debt. The reason is that by the time you take the interest being charged into account, you cannot get ahead and pay off the debt of a credit card by just paying the minimum amount due.
Cut the Interest
A great start is to use a 0% interest balance transfer credit card in which you can consolidate all of your debts in one place and avoid those interest payments for a while. The important thing to remember though is that those 0% interest balance transfer credit cards only last so long. Eventually, they too will go to a normal interest rate. You have to make the most of the time you have to pay off your debt interest free
Find the Money
Look at your current budget and spending habits and find out where you have extra money. It may mean cutting back on a few of the things you are used to having or doing each month (such as nights out at the movies or dinners out), but cut back to have as much extra money as you can to pay down that credit card debt.
Cut Back on Regular Expenses
One place many people forget to look when searching for a little extra money in their budget is things they are automatically paying for. When was the last time you looked at your cell phone service and how much you pay for it? Are you using all those minutes or could you cut back your phone service a bit to save a few bucks? What about that video rental service? Do you really use it to it’s potential or could you cut back for a little while? Paying off debt means making sacrifices.
Get Another Job
If you have done your budgeting and cut back but still just don’t seem to have enough to really pay off your debts, it’s time to take another tact. You need to make more money. This may mean making a sacrifice of your free time and filling it with another job. You should think of this as a means to an end. While you may not like the idea of having to get a second job, focus on your credit card debt and getting rid of it.
Sell What You Have
Another way many people are paying off their debts these days is through liquidating things they already own. eBay is a great outlet for this as most things with any collectible value can be sold there.