Getting out of Credit Card debt

Credit Card Debt

It is imperative that we make consumers more aware of the long-term effects of their financial decisions, particularly in managing their credit card debt, so that they can avoid financial pitfalls that may lead to bankruptcy.

Daniel Kahikina Akaka

It is easy to get into credit card debt. All you need to do is to charge and purchase what you want in life and then pay for the minimum amount at the end of the month when you receive the statement. Very soon, the outstanding amount plus interest will be accumulated to such an extent that it is beyond your means to pay. Getting out of debt is different. ball game. You need a two-prong approach. You have to break your habit of spending indiscriminately and pay off your debt faithfully by using a consolidated loan or a balance transfer.

Break your habit: You have to stop your impulsive buying habit or you have to keep the credit cards at home. You need will-power and determination to spend only on what you need and within your budget. You can’t pay off your credit card debt and at some time continue with your usual spending pattern. ”Here is a simple but profound truth. You cannot get out of debt by borrowing more money,” says Jerrold Mundis.

A consolidated loan: This is a loan that you get from a financial institution at an interest rate which is very much lower than your credit card. With this loan, you pay off all your outstanding credit card debt and start repaying the bank regularly until the full amount is settled. You will be able to pay off the debt much sooner as it is the only liability and the interest is very much lower. You can also transfer all of your credit card debt to a new credit card with a six-month 0% interest to pay off the outstanding amount in monthly installments. So you just need to focus on one credit card debt.

Control your spending and settle the outstanding amount faithfully and before long you will be out of debt. The most important thing is to stay out of debt.

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