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Eliminate credit card debt in 2011

[Dec 26, 2010.]

 

Are you burdened by credit card debt? Wouldn't it be nice to eliminate your credit card debt in 2011? Just think of how amazing it would feel to start the year with a manageable plan toward debt relief. It would give your new year a blast of hope.


People become buried in debt for several reasons: personal or family illness, loss of income, or overspending. Whatever your reason, it is never too late, or too early, to start gearing your habits toward getting out of debt. Make 2011 your year to become debt free.


5 quick tips for debt relief





  1. Don't use credit cards, pay cash.

  2. Pay the debts with the highest interest rates first.

  3. Make a budget that includes paying off debt.

  4. Create a reasonable plan, and stick to it until you are finished.

  5. Develop savings plans for large purchases. Save for the things you need, and stay out of debt for good.




Sometimes, when the situation is severe enough, the quick tips for debt relief won't work. In more severe cases of indebtedness, consider either a credit card debt consolidation loan or a debt settlement program. The major difference between these two options is that a credit card debt consolidation loan will have little impact on your credit score, whereas a debt settlement program will likely have a negative effect.


Credit card debt consolidation loan


Using a credit card debt consolidation loan, you will pay your balances, in full, faster. Make one monthly payment, reduce your interest rates, and have a set date for being debt free. Credit card debt consolidation loans turn multiple revolving accounts into a single installment account, usually with a much lower interest rate. Complete the installment program, and voila, you are debt free.


Debt settlement program


If something unexpected has happened in your life, such as an illness or loss of income, you may want to consider a debt settlement program. Because you will not be paying the entire balance you borrowed, a debt settlement program is not a first choice, and may adversely effect your credit score. A debt settlement professional can negotiate with your creditors to reduce your balances and interest rates, thus getting your debt back under control.

 

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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