Credit Card Debt Elimination – How To Find A Low Cost Debt Relief Program

They say when the going gets tough, the tough get going. Once you have collected massive debts the going is very tough from there on. So you need to make things work in your favor in order to settle your debt.

Before using a credit card, look at the interest rate. For example, if a card has a 20 percent interest rate, add a zero to it. Two hundred percent is what you’ll pay back by making the minimum payments only. That means for a $20 pair of jeans, not only paying back the $20, but nearly an additional $40 in interest. Or before each use of the card, sitting down on paper and using the math formula I=PRT. Interest= Principal multiplied by the Rate multiplied by Time. The formula comes very close to the same amount. No one seemed willing to pay $60 for a $20 pair of jeans.

If you are one of the people in the unfortunate situation of being knee deep in credit card debt s, you do have to find a solution immediately. You may have already heard about the commonly pursued solutions of bankruptcy and credit card negotiation. However, there is yet another one that you may wish to consider – consolidate monthly debts consolidation.

Let’s do the same example with a boat. I had this discussion with a friend of a friend not long ago and after we were finished he was ready to sell his. Let’s just use the same example as we did above. Ten grand at twelve percent. Well, in this case you’re not even using the thing that often. I asked this guy how often he actually used it the previous summer and he said “twice”. He said he’d like to use it more often, but he just didn’t have the time to do it as often as he’d like to. He also said that it was kind of a headache to tow it all the way out to the lake just for one day.

Put pictures of the places you want to go to in your home office, on your refrigerator. Put them anywhere that you will see them every day. Next time you are tempted to use your credit card, just remember the pictures of your vacation spot. You want to remember why you are making sacrifices.

Another option to bankruptcy is to consider exactly what your debt is. Perhaps you have purchased a home that is more than you can afford or maybe you have too much vehicle debt. If either of these is true, you may need to consider downsizing. If you are paying out more than 40% of your income on a house loan, it is definitely time to consider selling your house and buying a less expensive one. The same applies to vehicles — maybe this is not the time to be making payments on a Lexus when payments or paying off a late-model Toyota or Chevy makes more financial sense to keep more money in your pocket and your creditor’s pockets each month.

Here’s some incentive: A lot of the adults returning home to live with/off of their parents are doing so because of overwhelming financial irresponsibility. Teaching them to be responsible now will help help them in their future, and parents can have that “sewing room,” “den,” etc. of their own. And keep it.

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Credit Card Debt Elimination – How To Find A Low Cost Debt Relief Program

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