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Eliminating Credit Card Debt (For Real) | Financial Planning Tips

Eliminating Credit Card Debt (For Real)

Very often, we can take small actions that will begin to pile up over time. What started off as a positive purchase can turn into a future of negative anguish. Consider the process of eliminating credit card debt.

At first, the credit card companies dangle exciting shopping experiences in front of you with the sole purpose of luring you into purchasing. They make it seem effortless and allow for us to buy products or service mostly out of impulse. The credit card companies are more than happy to help you with this process of spending and make the experience seem to be one of joy – which it usually is.

However, once you have built up your pile of purchases and after you have been lured into a plan of payments, you will begin to see another side of the credit card companies you did not know when you first started working with them. After you have gotten over your head and forced to focus your time on eliminating credit card debt, you will soon see the darker side of these companies.

They may no longer be happy and friendly. Now they are often rude and angry and turn into bounty hunters looking to make your life as miserable as possible if you do not pay up and with interest. Certainly, it is your responsibility to pay for your purchases, but you can also consider a feeling of entrapment.  Of course, they don’t really want you to settle credit card debt that you have with them, they just want you to pay enough to keep your account in good standing, and make money of the interest they charge you.

What started as a – don’t worry just buy campaign – ends with a – how could you be so irresponsible – series of questions. You are made to feel guilty. You probably started out with those easy to get credit cards, or an unsecured credit card.  Now everything has to be secured, most likely.  So once this happens, what are some of the best strategies for eliminating credit card debt? Well, the first is to learn from the experience and STOP. If you keep doing what you are doing, you will keep getting what you have gotten. In time the wounds will heal if you stop and you can fix bad credit issues. But many of us just figure that we are so far in over are heads already, that we might as well bring down the whole ship.

So the first step is to learn from the experience and move on. If you have a large pile of debt, you need to treat it like any other pile of refuse. You need to start slowly taking out the trash. Yes, this usually means paying off your debt – including settling credit card debt – all of it. One of the fastest solutions is actually to create another debt to handle the first one. Here are two reasons why this can be a realistic choice for many:

By taking on a new debt you can PAY OFF the older debt right away. Why replace one hole with another? Because, very often debt is related to pressure and lack of time. If you take out a new debt you will have more time to pay it off. You can also do this with a 0% APR credit card, just make sure there isn’t a 0 balance transfer fee on the card. If you pay the old debt sooner you will instantly relieve the pressure of guilt and often avoid a lot of late fees or negative feedback.  Do everything you can to pay them off so you don’t have to get into a situation where you have to form a legal credit repair plan to clear debt and fix bad credit.

You can often take out a new loan at a better percentage rate. Let’s assume that your old loan is a 20% interest and the new loan is only 15%, well you just saved yourself 5% by taking on a new debt and you still are able to get yourself back on track.

As you can see, there are many strategies for eliminating credit card debt and some research will help you determine the best options for it.

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