Home » Finance » Personal Finance

How Can You Cut Down Your Credit Card Debt?

Feb 29, 2008
A lot of people are paying about an interest of $1,000 every year for their credit cards. This is really a huge amount. In fact, the interests of credit cards are usually quite high. As a result, it will be better if you can cut down your credit card debt.

So the question here is how you can eliminate the debt of your credit cards. In fact, the best way is not to use any credit card. You should cut most of your credit cards. You can keep one or two cards which are of lower interest rates so that you can use it in case of emergence.

Remember, you are keeping the card for emergence. You should not use it if it is not an emergent case. You have to be very clear that thing such as buying a new hi-fi system is not an emergency.

You can also consider re-structure your debt. This is extremely useful if you have to pay back for more than one credit card. You may move the debt of your cards to loans with lower interest rate. In this case you will be able to settle the debt in a shorter period since you can pay less interest.

Besides, you can also try the following strategy. You can firstly settle the debt of the card with the highest interest rate first. This is because it will help you to save the amount of interest you are going to pay in the future. The exact amount you can save will be a very difficult mathematics question. However, the good news is that you can easily find calculators on the amount of debt you can save from the internet.

You may also consider consolidating your debt. You can do it easily if you have a flat of house. You can use the home equity loan to pay off the debt of the credit cards first. So what is the point or advantage of this? The most essential advantage of this is that the interest will be a lot lower. Again, you will be able to settle the debt faster since the interest you have to pay is a lot lower.

No matter how you try to cut down the debt of your credit cards, the most important thing is that you do not add new debt. As a result, even if you do not cut the cards, you should not use the card to pay. You should only purchase if you have the cash on your hand.
About the Author
The author has great interest in finance. You can check his website on Financial Planning and News . Be sure to check Free Forex beginner Tips and Life Insurance for Over 50s Tips .
Rating:
Please Rate:
(Average: Not rated)
Views: 103
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources