Settling Credit Card Debt
It seems that every day you get a credit card application in the mail with offers of “no interest” and “no annual fees”. Each credit card company offers you free airfare miles or bonus points for signing up, trying to rope you into their snare. What these companies do not say in bold lettering is that you will be paying far more than you spend using the credit card if you do not pay off your entire balance by the end of each month. On your credit card bill, the “amount due” is actually just the interest on the amount paid. This means, that you pay the interest this month, but you still owe almost the entire amount you spent. Each month, the interest adds up, and you end up spending far more for each purchase than the retail price on the tag.
So, now that you are in way over your head in credit card debt how do you get out? First, DO NOT use your credit cards anymore. In order to get out of debt, you first must not create more debt. This way, your purchases will be made with money you have now, rather than money you might have in the future. Next, pay more than just the amount due on each credit card. If funds are low, then pay off the credit card with the highest interest rate and decrease and pay off that card first. Curb your spending on products you do not need, and put the money towards your credit card debt. As you pay off the credit cards and release yourself from these bonds, you will feel more free and happy. Once you have paid off the credit cards, just remember, DO NOT use your credit card to make purchases unless you promise yourself to pay the entire balance off before any interest accrues!