Credit cards have notoriously high rates of interest (finance fee) and credit limits that encourage high debt. It's impossible to determine how you can solve credit debt unless you understand how so when you acquired it.
Some consumers cover everyday living expenses with a credit card. This usually suggests that they're living beyond their means. Read the following list and find out if any point describes you. If so, the time is right you're employed out a long-term financial plan, re-evaluate current spending habits and build a monthly household budget.
You are approaching a financial problem if:
1) Your credit rating is under 600. A "good" score is all about 725. A pristine score is above 800. Lift up your score by eliminating your installment debt and resisting urges to try to get credit.
2) You've got no savings or emergency fund. Plan to deposit 5% of the take-home pay into a merchant account that you never touch - unless an emergency truly occurs.
3) Your credit card balances are rising rather than falling. The perfect situation would be to charge only an amount that you can fully pay at the end of every month.
4) You borrowed more money than you could reasonably repay. Banks have been very lenient with lending practices. Many householders pay a lot more than the recommended 28% of monthly income for housing.
5) Your bills are hurtling unmanageable. Spending with credit cards and piling up installments seems a national pastime, but participation is not mandatory. Put away the loan cards. Begin living the cash-and-carry life. You will never regret it.
These five symptoms permit you to diagnose an economic problem before it becomes fatal. The prescription is always to pay down credit card debt by looking into making a list of your cards, monthly minimums due and total balances due. Make higher payments on the lowest balance and minimum payments on remaining cards.
Once the first card is paid, navigate to the next small balance and add the total monthly amount from the first card to another minimum amount. Repeat the process until all accounts are paid and closed. Shred cards whenever you close accounts.
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NOTE: By researching and comparing the best credit card consolidation options in the market, you will determine the one that meets your very specific financial situation.
You are very welcome to visit the Credit Card Debt Consolidation website - where you can see the best rated debt consolidators on the market.
Proudly sponsored by the Payday Loans Arizona team
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