“How do I reduce credit card debt?” Well, reducing credit card debt is simple. You just need to prevent it from increasing and pay off what it is now. But is it really that simple? Not really. If it was that simple to erase credit card debt, then there shouldn’t have been so many people with credit card debt related problems.
There are all kinds of advice available on credit card debt reduction, but still nothing much seems to change. The problem still seems to persist and in fact worsen because those consumers do not put that advice to practice in their life. If you want to put that advice however, here are ways to reduce them much and finally eliminate them.
Set your Debt Reduction Goals
Getting rid of as much credit card debt you possibly can is the goal that you should set for yourself. Some debt is acceptable but most debt is just unacceptable and totally unnecessary. Just cut up all of your credit cards and only keep one card for emergencies — you define what an emergency is.
If you keep making your situation worse by charging your credit cards for unnecessary items then changing a few things around within your monthly budget can help with some debt corrections. Or, if you haven’t created a budget try that out for a little while just to see if it really controls your spending habits.
This debt reduction calculator can help you understand consequences of how you use your money. Just play around with it to discover an affordable monthly payment and how soon you can get out of debt.
Steps to Reduce Credit Card Debt
The first step to reduce your credit card debt is prevent it from taking dangerous proportions. The two most important ways of implementing this step are: balance transfers and use of cash.
Balance transfer is one popular way to reduce credit cards debt. By transferring your balance from your current credit cards to another credit card that has a lower APR than your current credit card you consolidate your debts into a single manageable debt. With 0% APR or low APR for first 6-9 months you prevent your debt from increasing so rapidly.
Another way to reduce your debt is to use cash instead of a credit card. The reason is hard-earned cash is usually more difficult to get out-of-pocket as compared to just a credit card. By not adding more to your credit card debt or preventing yourself from charging your credit cards you simply reduce your credit card debt.
Keep in mind that you can reduce credit card debt only if you stick to your debt reduction goals and live more frugally. You could find other sources of money to pay off that debt by getting a part-time or temporary job, asking to work overtime, or selling some of your assets. Alternatively, if you find it difficult to reduce credit card debt on your own, consider working with a reputable credit counselor.