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Eliminate Credit Card Debt

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Mortgage

Eliminate credit card debt
How to eliminate credit card debt: A question that is asked by a number of individuals around the globe. These are the people who somehow ended up in the mouth of the monster known as “credit card debt” (mostly as a result of reckless spending). So what are the ways to eliminate credit card debt?

If you are looking to eliminate credit card debt, you have already reached 50% of your goal because your decision to eliminate credit card debt is the first and most important step toward you being able to eliminate credit debt. Having said that, it is important to mention that you also need to be firm on this decision and stick to it with complete sincerity and seriousness till you finally eliminate credit card debt (and even after that).

To eliminate credit card debt, you need to plan. This starts with an analysis of the current situation in terms of your debt and finances (current and as expected in the near future). So to eliminate credit card debt, you need to first check the amount you owe on various credit cards. Just use a notebook to note down the amount you owe on each credit card and the corresponding APR associated with them.

Once you have this information handy, you can total up the various amounts to get the total amount of your credit card debt. After all, you can’t eliminate credit card debt if you don’t know how much it is actually. The next thing is to see if you have enough cash handy, e.g. in your various bank accounts, which you can put to use to eliminate credit card debt (of course, you will need to take a view on how much cash you will need to fulfill your day-to-day and specific future needs).

If you find that you have enough to eliminate credit card debt completely, just go ahead and eliminate credit card debt and earn your peace of mind. However, if you can’t eliminate credit card debt completely, check the amount that you can use to eliminate credit card debt. The next step, as you must have guessed, is to check how best you can use this amount to eliminate credit card debt (even if partially), i.e., which portion of credit card debt should you eliminate first.

So, first, eliminate credit card debt on the credit card that has the highest APR and which is hitting you the hardest. Then eliminate credit card debt on the credit card that has the next highest APR, and so on and so forth. If you are incurring additional late fees on some of your credit cards, you might decide to reserve some amount to make minimum payments on those credit cards (before you finally eliminate credit card debt on them).

What we have seen is just some basic analysis and the first steps in how to eliminate credit card debt. You might need to take some other steps to eliminate credit card debt, e.g., consolidating credit card debt is one good option. However, it’s imperative to understand that any and all methods to eliminate credit card debt will fail if you don’t inculcate controlled spending habits.
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