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CONTROLLING CREDIT CARD DEBT
There are many
advantages to using credit cards. People use credit cards for every type of purchase,
large or small. Credit cards offer great convenience.
However, credit cards will result in an artificial sense of financial security-at least until the
statement arrives.
Last year,
Americans spent over one trillion dollars by the use of
credit cards. In addition, the average family has a
credit card balance of $7,500, paying more than $1,200 in
interest/year.
Wipe your debt out in 2007!
If you are a victim of credit card debt, don't worry.
Detailed below are some common tips that will discipline your credit card use, helping you focus on
getting out of debt and saving money for investing.
We also suggest reading about
how to get rid of credit card debt.
Things to avoid when paying credit card debt
Never use your 401k or any other type of investments
to pay any credit card debt. By liquidating investments,
you are not only losing the money's future potential, you
are going to have to pay taxes on the money being
withdrawn.
A Few Simple Steps for Eliminating Credit Card Debt:
1) Stop creating debt. Eliminate any pointless
spending. Don't make purchases based on impulse. Once you
eliminate credit card use, you will experience very
positive results.
2) Keep records of your spending. Track every
dollar on paper. Doing so will allow you to spot areas
where spending can be reduced, or eliminated.
3) Set goals. Make plans on how much money you
expect to spend every month, and how much you anticipate
on saving.
4) Give it time. Getting out of debt will not
happen overnight. Be enduring and make sure you stick to
your goals.
5) Get professional help. Star Loan Services
offers help and guidance for consumers looking to regain
control of their finances. Learn more about the
credit counseling services we offer.
Making changes to the way you live your life is not
easy, but not impossible....
There is no easy way to eliminate credit card debt.
However, there are things you can do that will help you
from accumulating more credit card debt.
Get rid of cards you do not use. A good
idea would also be to close any non-active accounts.
Having extra cards will only lead to irresponsible
spending.
Avoid pre-approval offers. These type of
credit card offers probably arrive in your mail several times/week.
If you are going to accept one of these pre-approval
offers, make sure that you check out and compare the
terms and rates with several different offers. Any
applications that you are not interested in should be
immediately shredded. People often throw away these
offers without destroying them. This can lead to
becoming
a victim of identity theft.
Develop a budget. Not only is important to
set some sort of spending plan, you must stick to it.
Learn more about
planning a budget.
And while you're utilizing your budget, don't forget to
...
Start saving and investing. Just because
you have excessive credit card debt does not mean you can
not start saving and investing money for your future.
Even if you put $10 - 20 dollars a week to be invested,
it is a start. Remember, you need to walk before you can
run. Learn more about
controlling debt so you can save.
Utilizing Credit Card Advances for Settling Debt
Effects of Credit Card Debit on Mortgages
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