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4 Steps that help you purge yourself of credit card debts

Posted by admin On Mar - 29 - 2017

If you are stuck with a lot of credit card debts and all you wish to do is to reduce credit card debt, then you must consider various options in order to do so. There are many traditional debt solutions with the help of them you will be able to pay off your debts. However, before you opt for any debt solutions you may consider a few simple tips that will greatly help when it comes to the reduction of debts and will help you to even stay out of debts.

1. Sticking to your commitment: You should be very determined about getting rid of your credit card debts. In order to do this you should first stop using your credit cards. You should also try and refrain from taking any additional debts. Try to keep the goal of debt elimination in your mind all the time.

2. Listing all your debts: You should then make a detailed list of all your debts. This list should not only contain the amount of debt but all the other details as well. This means that you are to mention the interest that you are being charged on all those debts as well as the other terms of the loan. In case you have recently used one of your credit cards, then you are to find out the current balance from the credit card company and then list it.

3. Determining your affordability: The next thing that you are to do is to find the amount that you will be able to afford to pay towards your debts. To do this you should subtract your total expenses with your total income. The amount that is left behind is your net income or the amount that you have in order to pay off your debts. This is the amount that you are to use to pay your debts.

4. Allocating your net income: You should then allocate your net income among various debts. Try to make the minimum payments on all your debts and pay more than the minimum for at least one debt. This one debt is to be ideally the debt that has the highest interest rate.

You are to keep reviewing your progress every month. This means that you will need to find out if the way in which you are paying off your debts is of any use and is helping you in eliminating your debts. These are the steps that you should take in order to eliminate credit card debts.

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