GUEST POST by: Ryan Jones
When it comes to financial freedom, then credit card debt can form one of the foremost barriers to it. You see, as a consumer your first focus should be to reduce credit card debt if you’re looking to attain financial freedom. Generally it’s seen that credit card companies go on to entice their customers with some low introductory rates like cash advance checks and so many other promotional gimmicks. However, it’s nothing unnatural for you to have not realized that you were actually putting yourself up to the mercy of the credit card companies. Nevertheless, what’s done can’t really be undone; but you can very well take steps to reduce credit card debt provided you’re determined enough.
5 Strategies that can help you reduce credit card debt
Check out the following strategies that can help you reduce credit card debt and ultimately secure yourself financial freedom.
- Do formulate a list: The very first thing you should do is formulate a list of all your credit cards and make it a point to start with the smallest balance right on top of the list. This means, your largest balance should come at the bottom. Moreover, you should also take care to write down the minimum payments as you start paying off the balances due.
- Pay the current minimum: Make it a point to pay the current minimum on your account, or perhaps even more every month. You see as the balance keeps going down, subsequently the minimum payment will be reduced too. This is actually one of the easiest ways by which you can reduce your credit card debt.
- Make use of extra income: Also, you should make use of unexpected and extra income to boost your credit card payments. Say for instance you receive some unexpected income or perhaps happen to generate some extra cash, then make it a point to use this to boost your credit card payment. Don’t think of a ticket to splurge on or a dress worth buying when you get cash in hand, because on doing so you’d simply compound your credit card debt.
- Consider liquidating savings accounts: You could also consider liquidating your savings accounts when looking to pay off your credit card debt. However, when trying to do this please don’t end up liquidating your retirement funds for it has got penalties involved which are prohibitive in nature. On the other hand, you can liquidate those savings accounts which have a rather low rate of interest involved.
- Completely stop using your cards: When looking to reduce credit card debt, make it a point to absolutely not use your credit cards. However, that doesn’t mean you close your credit card accounts, simply refrain from using them anymore. Fact remains that you shall be unable to come out of credit card debt if you don’t refrain from using these accounts.
Make it a point to implement the above strategies and you’re bound to reduce your credit card debt soon enough and ultimately achieve financial freedom.
About the author: Ryan Jones is a renowned writer associated Debt Consolidation Care Community for the last four years and has written articles on several topics. She is an expert in solving money related problems of innumerable people. Some of his master pieces are based on topics such as finance, credit card, money saving tips, budgeting and so on.