The next 11 steps can really change your financial status, whatever the intensity of your debt is. It is not as hard to implement as it seems to be. Let us take a quick reading between the lines:
1. Get your bills:
The first step towards your financial freedom begins with stacking all your credit card bills together. This is the most basic step which has to be implemented. You have to do the lower grades in order to enter the high school. For each account, write down the total balance and the minimum monthly payment required. Prioritize your repayment.
2. Arrange extra funds:
The next step is to make sure that you can have the funds arranged in order to make the minimum monthly payment towards your credit card bills. Here you should keep in mind that you should not spend whatever you earn but you should only spend on what is absolute necessity. Make changes in your budget accordingly and reduce all extra expenditures. You can even think of having an alternative payment besides your regular pay or income.
3. Limit your card power:
Self restraint cannot be continued on for a long time unless you are Mahatma Gandhi so your next step is to bind your card limit. Call the bank now and ask them to reduce your card limit to an amount what is basic. This way you would not have to worry about the debt in the future and you will be able to divulge all your energy and focus on clearing last debts. Also since your card would not have the original limit you shall be forced to use it only under absolute necessity.
4. Transfer to a low interest card:
If you have already used your card to the hilt, be consistent in lowering the credit card limit as and when you pay off the balance. Also if your interest liabilities are huge, consider transferring your balance to a low-interest card. The advantage of this situation would be that you could save a few hundred dollars in payments since even half basis points can make a difference.
5. Prioritize your debt:
Get your credit card statements on the top of stack above your electricity bills, water bills and other phone bills. Make it a priority to pay off your credit card bills since this is the most important issue at this time. If need be, use your savings to bring your outstandings to zero. You can now be sure of a lesser debt than before, so be consistent in paying monthly from now on.
6. What better time than now! :
Today is the best time to pay off your dues since with every passing second the interest clock is ticking. So do not put off settling your dues for another day. The more you delay, the more the bills will mount. 'Decide How Many Credit Cards You Need' and 'Decide How Much Credit Is Too Much.' Decide what strategies suit you in order to enter the debt free situation.
7. Now your card is your foe:
If you have to, cut up your cards, hide them, or lock them in a drawer. You have to admit this fact that the more you get close to the card the deeper trouble you shall be in. The key to sticking to your credit card debt repayment plan is to stay focused on the numbers and be flexible at all times. Come what may!
8. Switch your cards:
Revise your spending plan for the next week. Get on the internet and google the lower rate cards. All banks will have this updated information on their official websites. Search around Eliminate-Credit-Card-Debt.com and you may get what is required. Find one or two low-rate cards and cancel all the others. This idea of switching to a lower rate card will help save you a lot of your hard earned money.
9. Stay with your friends:
Most people have unnecessary credit cards waggling in their pockets. It’s better to stick to just one or two cards which are your friends. You can utilize the first card for the purchase you pay off each month and keep the other one in case of urgent needs. They rightly say that too many cooks spoil a broth. Any more than two cards is usually an overkill.
10. Freebies are good! :
If you're going to use it anyways, why not get something back for your trouble? Many banks offer ‘gifts’ card. If you consolidate your spending on one card, consider getting a 'rewards' card where you earn miles, stuff, or cash back on your spending. Ask for a card from the bank which gives you a lot of stuff which you will actually utilize. This way you can save a lot of money from within your budget itself.
11. Cash Rocks! :
Make a habit of keeping cash in your wallet and advance to the level of spending cash while making a purchase. That ways you would not have a bulging bill at the end of your month. Spend money which you have, since there is no fun of living like a prince for 1 day and spending the next 7 days as a pauper.