Easy & Practical Tips To Significantly Reduce Credit Card Debt
In today's world, nearly all of us have at least one credit card. The good ol' average family is in debt to between 10 and 20 lenders, with almost 50% coming from credits cards alone. Getting a credit card has never been easier. There have been both good and bad consequences of this. While credit cards have allowed us to acquire goods faster than ever before, they have also allowed us to accumulate debt faster than ever before.
It might be that you are not ready to cut up your credit cards. As a result this article has been written with just that in mind. It's incredible how with some planning, you can end up paying much lower monthly bills.
Charging interest is the main way credit companies make their living. This is the way your payment is used. Firstly, a portion goes to clearing the balance. Secondly, whatever is left over goes to paying the interest.Some of the interest amounts charged by some companies have become ridiculous. Store cards are culprits in this practice, often charging between 30 and 40 percent interest. Those who are in such a situation are left with few possibilities. Signing up for a credit card from a major providers such as Visa or Mastercard is advisable. Their interest rates will vary depending on which bank it is through.
However, there rates are generally much lower that those of store cards. Furthermore, you can enjoy having higher limits with a major credit card. Hence, it is possible for you to combine all your store cards onto 1 major credit card and save a lot of money.
If you've already got a heap of major credit cards, then here are some money saving tips for you. There are so many credit card companies that they now have to compete for business. This leads to certain opportunities being created. It's recommendable that you firstly phone your credit card company and ask for a lower rate of interest. You should be surprised if they give you a lower rate especially if you've been paying your bills on time.
Nevertheless, if you are not successful in doing this, it's recommended that you look around for better deals. All you need to do is to apply for a card that offers a lower interest rate and transfer the old balance onto the new card. You'll be pleasantly surprised at the amount of money you can save by reducing your interest rate by 2 or 3 percent.
In the long run, credit cards can become a costly investment. However, by following the money saving tips in this article, you can reduce your payments significantly and keep more money for yourself.
It might be that you are not ready to cut up your credit cards. As a result this article has been written with just that in mind. It's incredible how with some planning, you can end up paying much lower monthly bills.
Charging interest is the main way credit companies make their living. This is the way your payment is used. Firstly, a portion goes to clearing the balance. Secondly, whatever is left over goes to paying the interest.Some of the interest amounts charged by some companies have become ridiculous. Store cards are culprits in this practice, often charging between 30 and 40 percent interest. Those who are in such a situation are left with few possibilities. Signing up for a credit card from a major providers such as Visa or Mastercard is advisable. Their interest rates will vary depending on which bank it is through.
However, there rates are generally much lower that those of store cards. Furthermore, you can enjoy having higher limits with a major credit card. Hence, it is possible for you to combine all your store cards onto 1 major credit card and save a lot of money.
If you've already got a heap of major credit cards, then here are some money saving tips for you. There are so many credit card companies that they now have to compete for business. This leads to certain opportunities being created. It's recommendable that you firstly phone your credit card company and ask for a lower rate of interest. You should be surprised if they give you a lower rate especially if you've been paying your bills on time.
Nevertheless, if you are not successful in doing this, it's recommended that you look around for better deals. All you need to do is to apply for a card that offers a lower interest rate and transfer the old balance onto the new card. You'll be pleasantly surprised at the amount of money you can save by reducing your interest rate by 2 or 3 percent.
In the long run, credit cards can become a costly investment. However, by following the money saving tips in this article, you can reduce your payments significantly and keep more money for yourself.
About the Author:
Jenni Snook is the main columnist of http://www.HealthyWealthySoul.com, a website focused on giving people advice and resources on personal finance planning to achieve both financial and spiritual bliss in their lives.
posted by Debt Consolidation Loan at
11:36 AM
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