Tips On Reducing Your Credit Card Debt

Tips On Reducing Your Credit Card Debt

An estimated 31 percent of  every credit card company's profits come from fees.  The average American family has over $8000 in credit card debt.  Making only the minimum payments, it will take over 30 years to repay this debt, and that is only if no more debts were incurred during that period.  Here are a few tips to help you repay your credit card debt faster and avoid incurring more debt:

1.    Put your credit cards away and use them only in the event of an emergency.  If you want to make a purchase, wait until you can afford to pay cash.

2.    Make a list of all your debts, starting with the one having the highest interest rate.  Use as much of your income as possible to pay off this debt.  Do the same with each debt you have, listing the debts by the amount of the interest rate.

3.    Watch your budget carefully, using any extra cash you can find to pay towards your debts.  Systematically paying off your credit cards one by one will allow you to become debt free more quickly and start saving for your retirement.

Credit card debt is the reason for the majority of bankruptcies and defaults in this country.  If you develop a plan to pay off your debts one at a time, and incur no new debt in the process, you will eventually become debt free and begin living a life of financial freedom.