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3 ways to help eliminate credit card debt

[Nov 14, 2010.]

 

You CAN eliminate your credit card debt. Follow these 3 steps to get you where you want to be, no longer burdened by credit card interest. These 3 steps will put you on the road to financial freedom, and they will help you maintain your good credit score. For further advice, consult with a credit card debt relief professional.

1. Cut up the credit cards - Credit cards serve a good purpose when used correctly. But if your debt has gotten out of hand, it's time to take a break. You should detox from the overuse of credit cards. Relearn how to pay-as-you-go. Then, once your debt is behind you, you can ease back into the water with healthier credit-use boundaries. You can't very well get out of debt if you keep using the cards. So cut them up, pay them off and then come back to the table fresh and debt-free.

2. Consolidate credit card debt - After you cut up the cards and go on a credit-use diet, consolidate all your balances. If you consolidate your credit card debt, you'll only have one payment to manage each month. Often, a credit card debt consolidation loan can lower the amount you pay in interest. The new loan may also give you a set term for repayment, which is a great motivator, because you know exactly when you will be out of debt. One monthly payment, a lower interest rate, and a set date to be out of debt are all good reasons to speak with a debt consolidation professional now.

3. Plan for big purchases - You may have relied on credit card reward programs for extra cash now and then, but those programs make it all too easy to spend more and get in over your head in debt. Now that you have cut up your credit cards and consolidated your balances, it's time to live life without relying on gimmicks like reward programs. One way to do that is to plan ahead for big expenses. Put money aside each month for the big purchases in your future. Whether it's for a vacation, or an unexpected car repair, it's important to set money aside every month to cover the occasional big expenses so they don't pull you back into debt.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.

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