Boone, NC

Thursday, July 15, 2010

Everyone wants to eliminate credit card debt, but sometimes the task can seem overwhelming. And no wonder: credit card debt is a massive problem for thousands of Americans, and as the economy gets worse, so does the issue.

Fortunately, you can take the first steps to getting your finances in order with this simple step by step guide.

1. Find a reliable source of information

With the new CARD Act in effect, the rules are changing, and if you hope to eliminate credit card debt you need to know everything you can about them. Find a reliable website like Credit Card Whiz Kid and check it regularly to make sure you're not missing out on important information.

2. Do a realistic debt assessment

Have you been avoiding your bank and credit statements for fear of what you'll find? It's time to overcome that nervousness and look through them. Make a chart with the headings: Amount of Debt, Owed To, Minimum Monthly Payment, Interest Rate. If you're overdrawn or behind on any debts, include that information too.

3. Consider consolidation if necessary

If your list is longer than four or five items, you might want to consider a consolidation loan, especially if there are some high interest rates showing up on your page. A consolidation loan is simply a blanket bank loan that you use to eliminate credit card debt.

It doesn't actually get you out of debt since you still owe the bank, but now you owe one person one monthly amount instead of trying to keep track of fifteen payments. The interest rate may be better, too, and so will the monthly payments.

4. Make a realistic assessment of your financial situation

Can you afford to pay off any of these debts directly? If so, which would be the most beneficial? If not, can you make significant reductions to any of them? And if you can't do that, how are you going to organize and budget so that you can meet those minimum monthly payments?

5. Stop spending

The most important step in credit card debt elimination is not accumulating any more debt. Cut up your cards if you have to. It's essential that you stop spending.

If you follow these five steps, you may not be debt-free in two weeks' time, but you'll find the road to credit card debt elimination a much smoother, easier ride.

For more tips on credit cards, saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources.

Sean Masterson

CreditCardWhizKid.com

Boone, NC

815-642-0460