6 Simple steps to reducing Credit Card Debt

Today it's more important than ever to get your finances in order. A very important step in the right direction is to get your Credit Card balances in order.  A structured, disciplined approach can help you get out of credit card debt whether your balance is $3,000 or $25,000. Follow these steps to get this debt reduced as quickly as possible. 

1) Take an Inventory!  Write down the balance and the interest rate  on every card you have. 

2) Ask for a Rate Reduction!  The quickest way to save big on your credit card bills is to negotiate a lower interest rate. If you can reduce the rate  point or two, you can save hundreds as you pay off your debt. A simple phone call to each Credit Card may be all it takes. While your credit score plays an important part in whether or not you get a rate cut, it's not the only factor. If possible, reduce the balance to less that 40% of the limit on a card, before you call and ask for the rate reduction. This will also help your Credit Score. Call each Card and ask for a rate reduction. You have nothing to lose.

3) Look for 0% Cards ! There are many Cards with 0% for the first 12 to 15 months .

http://www.comparecards.com/low-interest?

Starting with your highest rate cards first, transfer the balances to 0% cards. It is often free to do this. 

4) Get your useage of you cards under control! Put them away in a safe place and use them only for emergencies. If you have some sort of Rewards Card, use it ONLY if you pay it to a ZERO Balance every Month.

5) Set Goals to pay off the balance/s of your Cards. For example: $500 per month, pay as much as you can afford. Set yourself a reward for achieving your goal of paying off your Cards. Perhaps it's having the money to start a business or making the Down Payment on a house. Have something to look forward to when you accomplish your goal.

6) Track your progress! Use a simple spreadsheet or a notebook to record your progress every month.

I hope you find this useful!

Charles Murphy