You should find at least some relief in knowing that you are not the only person struggling with a credit card debt problem. There are many people who are in the same position as you and many more who are even in worse debt. However, the common bond is the desire to reduce credit card debt and find a bit of financial freedom. If there is a problem then there must be a solution.
You are probably already aware that many different ways and methods to reduce debt. Some ways are better than others, but keep in mind that just because a method is simple does not mean that it is ineffective. Presented below is a simple approach to finding financial freedom by reducing your debt.
1. Assess the problem. Create a spreadsheet with fields labeled ” Name of credit card, Balance Due, Annual Percentage Rate (APR), Payment Due Date, Earned Reward Points, Reward Point Offers, Comments.
2. Using the information for each of your credit cards - fill in the table.
3. Figure out which credit card is contributing the most to the credit card debt problem i.e. highest APR and highest balance.
4. If reward points can be converted to cash or used to make payments on the balance due, then you should use them to help you. If you can only use your points for reward items, make sure to use the points for something that you would otherwise have to purchase.
5. Examine the possibility of using balance transfers at low interest rates to consolidate your credit card debt. You may be able to consolidate your debt on a one credit card instead of getting a consolidation loan.
6. Your primary effort should be of reducing the debt on the credit card that adds the most to your debt problem. Pay the minimum on all other cards.
7. Do not add to your debt by continuing to spend excessively. Develop a strict budget for your monthly expenses and put the rest to use by paying off your credit debt.
8. Try to find ways to increase your income. If getting a part time job or selling items of value will help you pay your debt down then you should consider it.
9. Lastly, enjoy watching your debt level decrease over time and don’t forget to reward yourself for achieving your goal of getting out of credit card debt.
Keep in mind that this is just one method of many for reducing credit card debt. There is usually only one best solution for every given situation but if you do some research you can find some great programs that will help you identify a way to get out of debt the quickest. Spending the extra time doing so will be well worth it in the end. In any case, each approach is a good one as long as it helps you reduce your credit card debt and find financial freedom.
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