As shaken from credit card debt - Seven Strategic Steps To escape the trap of debts of Credit Cards

Are you overwhelmed with credit card debt? Would you like to get back to sleep peacefully at night knowing that owes nothing to anyone?


No doubt the debt is one of the biggest devastation statement of the vast majority of families today. The common American household has an average of 10 credit cards and almost 50% of them have difficulty paying their monthly bill.


Credit cards have invaded the homes of the century. They are very easy to get and very cheap to use. There is evidence that consumers spend 12% more money to buy credit card instead of using cash.


It is very easy to fall into a habit of overspending when you only need a swipe card to cancel a purchase. Very few are aware of how expensive it costs to slip this little card.


It is something to make a few simple mathematical calculations.


For example, if the balance of a debt is U.S. $ 8,000 to 18% interest and is paying the monthly minimum, will take 25 years to pay the bill. Will pay $ 15,000 in interest, almost double the amount of debt. That gives a total debt of $ 23,000.


On the other hand, if you have a debt for which you have to pay $ 200 a month, if you took that same money and invest 12% in a mutual fund, in 25 years you could retire with more than one million dollars!


It's time to face the monster of credit card debt!


How?


The following will describe an effective strategy to get out of their credit card debt. It will require effort and will not clean up its financial situation overnight. But with effort and persistence, you can get rid of debt in a much shorter time than you think.


Step 1 Gather all credit cards you have and pick one with which he wants to stay to cancel products that you can not pay cash, for example when shopping online.


Step 2 Write down everything that you owe on each card when it expires, and what is the interest rate for each.


Step 3 Choose the one with the lowest value of debt and double the amount of the payment of that card. Then try to pay as soon as possible.


Step 4 When you have paid your first credit card, celebrate his victory and cut with scissors to never use it.


Step # 5 Then choose the next card with the lowest value and use the surplus that remains for payment of the first card to cancel the second. Repeat steps 3 and 4 with their remaining cards until you have them all paid.


You will see that there will be a snowball effect with each card that cuts, since the amount of payment of previous debts will be accumulated and be available to pay outstanding card debt.


Step # 6 Avoid impulse buying. Do not go to the supermarket without a list. Compare prices and always pay everything with cash.


Step 7 Use the card that remains carefully. Just do your shopping when you know you'll be able to pay the full amount of your purchase at the time of charging the card, which is normally the next month. Never pay in installments.