Get You Finances In Order
Get Out Of Debt Now!
If you can’t bring yourself to cut up your credit cards, try setting them aside at least and using cash as much as possible. Try carrying around a set amount of cash to use each week. We make better purchasing decisions when we actually have to hand over cash plus it limits what you can spend. Getting out of debt will become easier when we run out of money, we stop spending it’s that simple. When the only way to purchase is plastic, buying online for instance, then use your debit card. Your debit card can also be used as an emergency substitute for cash should you run out.
Close accounts that are no longer necessary or needed. Having unused credit available from lenders with whom you’ve had a long relationship will help boost your credit score. Having too many will harm your credit score. As a rule, 3 credit cards is what works best and try to never spend more than 50% of the available credit on any of the cards. This will keep your score at it’s highest. You should also consider closing all your retail store cards, if you need to make a purchase then use your credit card and pay it off at the end of the month.
Lowering Your Interest Rates
Start by reducing what you pay in interest. Start by calling current credit card companies and explaining that we intend to transfer our balance to another issuer unless our interest rate is lowered. Almost all credit card companies run promotional programs with low or 0% interest. They will be willing to put you on one of those rather than risk losing your business. All you need to do is at least try and ask. Try getting your credit card balances down. Finally you need to develop a strategy for paying off our existing credit card balances.
Gather all your credit card statements together and make a simple table listing the entire amount you owe, and the minimum payment and interest rate for each card. This will help determine the order in which we should pay off our cards. Focus on the highest interest rate cards first and pay off as much as you can each month while making only the minimum payments on our other cards. When the first card is paid off, use the same strategy on the next-highest interest rate card and so on until you’re debt-free. Over time these tips will help you once again be debt free.
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