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Credit Cards
Easy Ways To Pay Off
Your Debt Faster
by Martin Lukac
If you ignore your debt you will wake up one day to
find that it has eaten your entire life. That is what
it feels like to be drug under by credit card debt.
You don't want to even know how much is on your cards.
You don't want to open the statements at all. Forget
it -- why would you want to know how long it will
take to pay it off.
And the worse it gets, the more you want it to disappear.
The only way it will is by paying it off and getting
rid of it for good. You can't ignore it and think
it will go away. Over time, it will just grow and
grow. You can't wish it away. You can't get rid of
it easily. You may have to sacrifice and make changes
in your life.
But there are ways to speed it up from where it is
right now.
The first thing you have to do is start paying more
than the minimum payment. If you are only making that
minimum payment, you are dragging things out and costing
yourself thousands and thousands in interest. You
can save money and time by putting just ten dollars
extra towards your debt. Find ways to cut back on
other things and put all you can towards your credit
card bill.
If you have good credit and a solid credit history,
you could consider switching your balance to a lower
interest rate credit card. There are many cards offering
zero percent interest for a year on balance transfers.
You can even find those that claim a low fixed rate
on balance transfers for several years. But the key
is that you have to make every payment on time or
you will go to a default rate of somewhere near 30%.
You also have to close your old account so that you
aren't tempted to charge on it. You are eliminating
debt, not finding new debt!
If you have more than one credit card, you need to
make a list. List all of your cards in order from
highest interest rate to lowest interest rate. Pay
your minimum amount on all cards except for the number
one on the list. Put as much money as you can to paying
off that card. When it is paid off, do it to the second
card on the list. This is called the snowball method.
With each card you eliminate, the more you have to
pay off the next card with. And when you go from highest
interest to lowest, you are saving a lot on interest
over time.
If you don't have good enough credit to get a new
card with a lower interest rate, you should call your
credit card and request a lower interest rate. This
will only work if you haven't missed any payments
yet. That is the key. You should always contact your
lenders before you start missing payments. If you
have missed payments, you can try to negotiate a repayment
plan with the lender. You may find that you have to
talk to several customer service people, but it may
be worth it. This is what a debt reduction person
would do for you. But you can do it for free.
Simply tell the lender that you are having financial
difficulties. You will need to negotiate a lower monthly
payment or you will have to file bankruptcy. Many
creditors will work with you, especially if you are
upfront and honest. But if you fail to follow the
deal, they will be angry and probably take actions
-- like a higher interest rate and large late fees.
Getting out of debt is not easy. But you can speed
up the process by making a larger payment and getting
lower interest rates. It may take sacrifice, but in
the end it is definitely worth it.
About the Author
Martin Lukac represents http://www.RateEmpire.com,
an Internet consumer banking marketplace. RateEmpire.com
is a destination site of personal finance, investing,
taxes and mortgage rates. RateEmpire.com provides
mortgage guides and financial rates and information.
RateEmpire.com also operates a financial portal #1
American Financial, found at
http://www.1AmericanFinancial.com and San Diego
loan portal http://www.LendingSanDiego.com
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