Eliminating Credit Card Debt

Tips for paying off credit card debt come in a variety of forms from different individuals who are trying to impress upon the credit card debtor, the importance of living a debt free lifestyle. One of the first tips for paying off credit card debt, and the most popular, is to pay more than the minimum payment. In most cases the minimum payment doesn't even cover the interest rates being charged on a credit card, much less the principal amount. For example: If you have a $1750 balance (which is much lower than average for standard household debt) at an interest rate of 16% (which also is lower than average), the interest alone each month begins at $23.33. A credit card with a balance that low would only have a minimum monthly payment of $15-$20.

This is below the interest being charged. So if you are only making minimum payments each month, you aren't lowering the debt, you are actually increasing it. One of the next tips for paying off credit card debt is to start keeping track of your spending. Many people don't realize how much unnecessary stuff they buy because it is too easy to "put it on the card". If you keep track of balancing your checkbook to make sure you don't overdraw on your account, why don't you keep track of your credit card use to keep from getting into major debt? Keep the receipts of all credit card purchases, ideally every day, but at least once a week. Add those receipts up and create a credit card file where you can keep track of just how much money is going onto that credit card.

Additional tips for paying off credit card debt suggest that if you notice that too much is going on the credit card and you don't have the funds now or in the future to pay it off, the credit card must be suspended from use. Common tips for paying off credit card debt encourage the debtor to consider not using the credit card until it is paid off, this is a strategy many use. They don't allow themselves to add on any more credit until the last batch was paid off. You may find that you pay the card off easy when nothing is being added month to month, or you may find it impossible.

Once the tips for paying off credit card debt have been used, you may realize that the credit card was a source of second income and that you don't have the first income to pay it off with ease. This is where many debtors find themselves. This is the category of not having enough extra money every month to make a dent in the credit card. Remember making a dent in the credit card balance means paying anything over the interest charges. The last tips for paying off credit card debt are applicable if you find yourself unable to stop your credit card spending. Seek professional help. There are many free organizations that can help you regain control of your financial life.