Like get out of debt Credit Card - Seven Steps To Escape From Strategic trap Credit Card Debt

Are you burdened with credit card debt? Would you like to go back to sleep peacefully at night knowing that they owe anything to anyone? No doubt the debt is one of the state's largest toll account for the vast majority of families today. The average American household has an average of 10 credit cards and almost 50% of them are struggling to pay your monthly bill. Credit cards have invaded the homes of the century. They are easy to obtain and too tempting to use it. It is shown that consumers spend 12% more money to buy credit card instead of cash. It is very easy to fall into a habit of overspending when you only have to swipe a card to cancel a purchase. Very few are aware of how expensive it costs to slide this little card. It is a matter of making some simple mathematical calculations. For example, if the balance of a debt is U.S. $ 8,000 18% interest and is paying the monthly minimum, it will take 25 years to pay the bill. Will pay $ 15,000 in interest, almost double the amount of debt.

That gives a total debt of $ 23,000.

On the other hand, if you have a debt for which you have to pay $ 200 a month, if you take that same money and invest it at 12% in a mutual fund, in 25 years you could retire with more than one million dollars! It's time to face the monster credit card debt! How? The following will describe an effective strategy to get out of their credit card debts. It will require effort and will not clean up its financial situation overnight. But with effort and persistence, you can get rid of debt in a much shorter time than you think. Step # 1 Gather all credit cards you have and choose one with which he wants to stay to cancel products that you can not pay cash, for example when shopping online. Step # 2 Write down what you owe on each card when it expires, and what is the interest rate of each. Step 3 Choose the one that has the lowest value of debt and pay double the amount of that card.

Then try to pay as soon as possible. Step # 4 When you have paid your first credit card, celebrate his victory and cut with scissors to never use it. Step # 5 Then choose the next card with the lowest value and use the surplus that remains for paying the first board to cancel the second. Repeat steps 3 and 4 with remaining cards until you have all paid. You will see there will be a snowball effect with each card that cuts, since the amount of the payment of previous debts will be accumulated and be available to pay outstanding card debt. Step # 6 Avoid impulse buying. Do not go grocery shopping without a list. Compare prices and always pay for everything with cash. Step # 7 Use the card that is carefully. Only shop when you know you will be able to pay the full amount of your purchase at the time of collection of the card, which is usually the next month. Never pay in installments.