fbpx
Tackling Credit Card Balances Is Not A Problem Anymore
Play Audio Version Of This Post

If you’re running a balance on your credit card, paying the minimums is about to get a lot harder! The new credit card minimum regulations might leave you with a monthly minimum payment that’s double what you’re currently paying. There’s no need to panic, just take this as a sign that it’s time for a change. Erin Burt of Kiplinger’s offers us some tips to help get our credit card balances under control.

How to Control Credit Card Dept:

Step 1: Put your credit cards away, at least until you’ve paid them off. Out of sight, out of mind. Remove the temptation and take your cards out of your wallet. Try the bottom of your sock drawer, or entrust them to a friend or relative for safe keeping. You could even place them in a bag of water and throw it in the freezer — you’d have to wait for it to melt before you could use it, which would hopefully be long enough for your impulse to pass.”

Step 2: Dig for loose change. To make those larger minimum payments — or to pay extra toward your principal — you’ll need to come up with more cash. The couch cushions are a prime target, but think bigger. Take a good look at your spending and find areas that you can cut back. “Everybody has 15% to 20% of fat in their budget,” says Dvorkin. For example, forgoing that $4 latte every day would save you about $120 a month. Dvorkin also suggests re-shopping your car insurance, using a lower grade of gas or reading your newspapers online.”

Step 3: Consider a balance transfer. Many credit card companies offer 0% or ultra-low interest on balance transfers for a limited time — usually four to six months. If you qualify, such a deal will help you wipe out your debt faster because all or most of your payments would go toward your principal, not the interest. It could also buy you the time you need to pay off your purchases entirely.”

Step 4: Pay off cards with highest rates first. You should always pay at least the minimum on all your credit cards each month to avoid late fees and damage to your credit rating.

  • But if you have some extra cash, put it toward the card that charges the highest interest rate, says Dvorkin, and keep doing that until the card is paid off.
  • Then, put the excess cash toward the card with the next-highest rate, and so on until your debt is wiped out. You basically get a return on your investment equal to the interest rate.
  • Put $20 extra toward your credit card charging 18% interest, for example, and you just got an 18% return on your investment. Not too shabby.”

9 thoughts on “Tackling Credit Card Balances Is Not A Problem Anymore

  1. I discovered your blog site on google and verify a couple of of your early posts. Proceed to keep up the very good operate. I simply further up your RSS feed to my MSN Information Reader. Looking for ahead to studying extra from you in a while!…

  2. Aw, this was an extremely good post. Spending some time and actual effort
    to make a very good article… but what can I say… I hesitate a whole lot
    and don’t seem to get anything done.

  3. Do you have any kind of pointers for writing posts?

    That’s where I constantly struggle as well as I simply end up
    looking vacant display for long time.

  4. You actually make it seem so easy with your presentation but I find this topic to be
    really something that I think I would never understand.

    It seems too complex and very broad for me. I’m looking forward for your next post, I will try to get the
    hang of it!

    1. Hi Bob, Thanks for reading our info. We will try to add more info for you in basic English for your better understanding. Thanks Again.

  5. I got this web site from my friend who told me on the topic of this website and now this time I am visiting this website and
    reading very informative posts here.

  6. Thank you for some other informative blog. The place else may just I am getting that type of information written in such a perfect manner? I’ve a project that I’m just now running on, and I’ve been on the look out for such information.

Leave a Reply

Your email address will not be published. Required fields are marked *

Bitnami