There are some right ways and some bad ways, learning how to pay off credit card debt. We are creatures of habit and the credit card companies use this to their advantage. If you're fed up struggling month to month with debt, it's time for you to take action, make sure you take the right action!
Don't make these 5 mistakes!
1] You're fed up so you close your accounts.
You had reached your credit limit and maxed out your other cards, so instead of just destroying the cards, you phoned each one of your creditors and had them close down your account. Now you've got them! The only problem was in a few short months your credit rating too a dive! Don't close the accounts, just destroy the cards!
Tip
Here's what I did {I put the cards in a plastic bag of water...and froze them now whenever I open the freezer I can see them! Helps keep my priorities in order!}
2] Decide to try Debt Consolidation.
Wondering how to pay off credit debt I checked into hiring a good Consolidation Company, I though that by combining all my debts into 1 payment would help. {Don't get me wrong for a lot of people this works, if it's your only option.} They usually charge a up-front fee, can freeze your accounts, but what really scared me off was my credit report would get marred by the statement "third party assistance".
3] Paying the high interest rate.
If you're serious about paying off your credit cards try asking the Bank or creditor to give you a lower interest rate. If you're a loyal customer they'll want to keep your business.
Tip
Here's what I did {I told my bank that I would cash in my RRSP and pay off my credit card debt! Guess what? I got a lower rate! It's worth a try.}
4] Get an Equity or Personal loan.
No a good idea, the problem is once you've gotten your loan and paid off your debts, do you stop using your cards? No we start racking them up again! Debt is a vicious cycle and one that we keep getting into!
5] Only pay the minimum balance.
Did you know who always wins in this situation? Your creditors do. And at interest rates of 15% to 20% they don't care! Always pay a least double the minimum payment.
The idea way on how to pay off credit card debt is to do it without using a Debt Consolidation Company or going Bankrupt! Does it sound hard? Maybe even impossible but actually it's not as difficult as you might think. I was in you shoes not too long ago, I was lucky I found help with... Scott Stephen's powerful book "Ultimate Debt Guide."
Is paying off your debt a priority? Is your whole world falling to pieces? Check out my site How to Pay Off Credit Card Debt - Up To Your Eyeballs in Credit Card Debt? Discover what you can do by reading the "Tips on how to pay off credit card debt" Check out Scott's book "It's amazing how these techniques work so powerfully!
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