Eliminate Credit Card Debt
Online shopping has become a cornerstone in our lives, flip into a cart here, snap a deal there or partake in a wild foray into an Amazonian jungle of goodies its all happening online. ‘Click-Swipe-Buy’ is the new shopping mantra. The shop windows, web pages, in this case, are overflowing. They seduce with goodies at prices sometimes half of what we are available at the local store. Our bills pile up finally they reach their limit and cred card debt must be assessed and cleared.
So we reach for our credit cards to make the kill, many a time with our fingers crossed when the credit card processing is happening because we are not sure if we are credit worthy or not. Will the credit card God smile on us today or not if the transaction goes through we thank the God of 3 3/8inch by 2 1/8inch all is well until the day the bill arrives and drills a hole in our pocket, at times so deep that we are repaying it for the rest of our lives. If this is what your life looks like it’s time to dump, the credit card I mean.
How do you know, if it’s becoming harder by the day to handle the use of your credit cards and you are increasingly falling into ‘Temptation’ and debt? My suggestion is to cancel the cards, cut them up so that the ability to swipe is gone and make a plan on how you will return the money. Now you would ask,’how do I do that’?. I follow Denzil’s new and much improved with ‘time chip away’ system. Here’s how it works.
Begin with the card that has the least amount due on it. Every month pay a minimum amount on each card plus what I call a ‘top up’on the card with the least balance. Paying a little extra for one card, eliminate them one at a time. Why did I choose the card with the least amount, because when the bill is cleared it gives you a high, a sense of achievement when credit card debt is eliminated. Next pick on the card with the second lowest debt, take the amount you were paying for the first card and apply it to the next smallest amount of credit card debt, and so on until you’ve paid off all your credit cards. It sounds simple, but it’s very powerful and will lead to credit bliss.
Chart your progress.There is a great sense of achievement in watching your debt diminish. I have drawn out a rough chart below to demonstrate how the system works.
CARD NAME TOTAL MONTHLY TOP UP CLEAR BY TIME
CREDIT CARD A 30000.00 3000.00 2000.00X 6 6 MONTHS
CREDIT CARD B 50000.00 3500.00 5000.00X 3 10 MONTHS
CREDIT CARD C 80000.00 4000.00 8500.00X 4 13 MONTHS
Now you would turn to me and say but there are those fantastic deals that I get online 60% off. I’d say to that if you have a debit card use it. That way only what you have you spend and what you don’t have you live without. You could also use any online system that debits your bank account immediately. That way you will only spend if you have the money in the bank. BUT REFRAIN FROM USING ANY SYSTEM THAT GIVES YOU CREDIT OF ANY SORT that’s because their credit is the beginning of your debt and finally it will be you who will have to clear Credit Card debt