Consumer debt is increasing and it is expected to continue on this trend. Let’s face it, we live in a consumerism culture. We are bombarded by ads to buy new and, at times, unnecessary products multiple times per second. It is no surprise that so many of us are in credit card debt. It is of no surprise that so much of us have such low financial literacy and are moving toward a financially painful retirement. If you are trying to make a change, you are probably asking, how to pay off credit card debt?
Know Your Credit Card Bill
If you are wondering how to pay off credit card debt, it may be best to start with your credit card statement. First, ensure that you are looking at your own credit card statement. Does the statement have your name, address, and credit card number/account number? If the statement does, take a deep breath and look at your balance. Remember your balance. Know your credit card balance. Know your exact credit card balance. So often, we generalize and minimize what we owe by giving a ball park number. It is important to deal with the reality of what we owe by knowing and repeating the exact number.
Now, take a look at the minimum amount due and how long it would take you to pay off your balance if you paid the minimum amount due. It is important to know your balance, it is also as important to know how long it would take to pay off your credit card balance. The Credit Card Act further notes the disclosures required by law on your statement.
By looking at the above information, you will be able to get a real understanding of your financial situation. You will also become more comfortable with your credit card statement.
Your Transactions
Now, if you are asking how to pay off credit card debt, look at the transactions on your credit card statement. Are the transactions all necessary purchases or wants? Circle all the wants (purchases that are not necessary). Thereafter, highlight at least one transaction that you will not do next month. Each month, perform this task of highlighting at least one want that you will eliminate until you are down to only needs.
Apart of paying off your credit card debt is not growing the debt. In the process, learn to create a sustainable financial lifestyle. In short, stop making unnecessary purchases and live within your means.
Contact The Credit Card Company
If you are asking how to pay off credit card debt, one of the best action you can take is to communicate with the credit card company. Keep the line of communication open. Call them. Have a conversation with the credit card company with regard to your financial situation. If you are unable to pay a bill, it may be possible for the credit card company to give you some time. Further, you can request a reduction in interest rate. What do you have to lose? Call them.
In some instances, your credit card company may forgive a portion of your debt. But there is no chance of this happening if you do not communicate with the credit card company.
Balance Transfer
To pay off credit card debt, it may be advantageous to look into a balance transfer. By doing a quick search, or even going through your mail, you may quickly find that many credit card companies offer 0% interest balance transfers for a number of years. At times, the 0% interest will last at least one year while others times it may be about two years.
With anything in life, it is important to do your due diligence. Review the terms for the balance transfer. Read the fine print. Ensure that you will not have anything additional to pay for the transfer and that you will have nothing to pay until the time period noted. Understand whether or not there are strings attached to the balance transfer. If there are strings attached to the balance transfer, know them, and only proceed if you are comfortable with them.
How To Pay Off Credit Card Debt – Pay It Off
To pay off your credit card debt, pay it off. By paying off your credit card debt, you will instantly earn 12-24%. By paying off your credit card debt, you will not have the 12-24% interest payments. But how do you pay it off?
To pay off your credit card, you can pay the minimum due. It is important to pay at least the minimum due to ensure that your credit is kept in tack. However, if you pay the minimum, you at least know how long it will take for you to pay off your credit card balance. The credit card company already told you this on the credit card statement. To pay it off faster, consider paying a portion above the minimum due. This is strongly recommended if you are able to afford it.
If you are asking how to pay off credit card debt, to pay off your credit card debt, know your numbers, contact the credit card company, consider a balance transfer and pay it off. There are other methods such as bankruptcy that you may also consider, however, it would be best to appreciate the financial consequence of such a route.
Conclusion
Consumer debt is increasing and it is expected to continue on this trend. Let’s face it, we live in a consumerism culture. We are bombarded by ads to buy new and, at times, unnecessary products multiple times per second. It is no surprise that so many of us are in credit card debt. It is of no surprise that so much of us have such low financial literacy and are moving toward a financially painful retirement. If you are trying to make a change, you are probably asking, how to pay off credit card debt. Know your numbers, contact the credit card company, consider a balance transfer, pay off your credit card debt and journey to financial independence.
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