Eliminate Credit Card Debt Without Breaking the Bank

By: Ronnica Rothe

Credit card companies work hard to get their hands on your hard earned money. If you simply pay the minimum payments on your credit card bills, the majority of the money you give will be going to pay the interest on your debt leaving very little to pay against the debt you owe.

Unfortunately, many people find themselves in the position that they cannot pay much more than the minimum payments on their bills. Their income and expenses simply does not allow them to devote any more of their funds towards paying down debt. People like you who find themselves in this situation must find another way.

One way people try to pay their debts down is by using balance transfers. This is easily done especially when credit card solicitations often include checks to send to your other creditors. There is sometimes a benefit to transferring your balances as well, as you can often get a lower interest rate on the debt. However, incentive interest rates never last, so this is usually not a practical way to eliminate credit card debt unless you foresee having the money to pay the balance in full in a few months.

Another way to eliminate credit card debt is to be disciplined in how you go about it. Focusing on the account with the highest interest rate first, some people are able to pay off their accounts a little a time. The downfall is that this can often take years, allowing much of your money to go towards paying interest on your other accounts while you are focusing on another one.

A disciplined approach that also allows you the benefits of lower interest rates is a debt management plan. Many reputable companies offer this plan as a way to consolidate debt into one payment. They work with your creditors to lower your interest rates. You may even be able to pay less on a monthly basis than you are now. Most people find they can completely eliminate credit card debt in three to five years on a debt management plan.

If you are serious about getting rid of your debt, talk to an accredited credit counselor about what options might be best for you. This will provide you with the help you need to achieve your financial goals.

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