Credit Card Debt Reduction in 9 Steps

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. Take stock of the situation i.e. draw up a table with the following fields " Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.

2. Fill the table up with data from your various credit cards.

3. By comparing the balance and the APR for each credit card, determine which card add to your debt problem the most. This may or may not be the card with the highest APR.

4. Check if reward points can be used to make partial payments or cover any kind of fees or if the points can be bartered for something you need (spending less means preventing the credit card debt problem from getting worse).

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. First eliminate debt on the credit card that is contributing the most to the credit card debt problem.

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. Look for alternative means of adding to your income (more money means earlier termination of credit card debt problem)

9. Set monthly goals for paying your debt and take pride in achieving those goals. As you watch your debt disappear over time, you should look forward to celebrating your accomplishment when you are finally debt free.

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.
Author: EricKFrey