How much do you know about the amount of credit card debt you have? In order to have an effective plan to eliminate credit card debt, you will need to stay on top of exactly how much and to whom you owe money.
For some, just listing all of our creditors is a scary thought, much less paying them all back. Getting this list on a page or (even better) into a spreadsheet is intimidating because all too often the amount is more than you want to think it is. However, you should start your debt reduction strategy with a good dose of reality – no matter how painful.
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There is a barrier to break through here. It consists of making a transition out of the mindset that you have a manageable amount of debt that you will pay down “some day.” You need to instead substitute a disciplined knowledge of what your debt burden is and start the unavoidable task of paying it down. It is not likely that you will receive a huge inheritance, get lucking with an investment, or win the lottery. So, the healthiest strategy is to get started today with you list of debts and finding a little extra money each month to start the process. If you win the lottery, all the better.
Take this step today! Pay more on your credit cards than you charge for the next month. Then, next month you will clear this hardest of hurdles of getting started eliminating your credit card debt. The feeling you will get from actually reducing your debt over the next month will surprise you and give you some much needed momentum.
Accelerate Credit Card Debt Elimination With This Simple Strategy
December 8th, 2008 at 6:31 pm
For those trying to fight their credit card debt, one of the best places is to start with the credit card companies themselves. Make it a regular practice to call your credit cards to ask for a lower rate. I have one client who owes over $20,000 on a Visa that was at 18%. He spoke with a ‘rate specialist’, touting his rising credit score and declining balance and got his rate cut in half, from 18% to 9%! His monthly interest charge was instantly reduced by $150, which will help him pay off his debt even sooner.