One of the most recurring questions on the internet is: ” How to get out or take out credit card debt “. The answer is quite simple – paying the bills! This is a typical serious joke .. but, the fact is that it all starts by making a realistic assessment of how the finances and the financial situation as a whole are, from actual, future revenues and expenses.

 

1. Evaluate your expenses, expenses and income

 

1. Evaluate your expenses, expenses and income

 

Create a report on an excel spreadsheet or an online application putting everything you owe, including credit card debt and all other monthly bills. This review of all debt should include the balance and the monthly percentage rate (interest) – the price you are being charged when borrowing money for each time you use the credit card.

Looking at the interest of each card will help you decide how to plan to reduce your debt. In some cases you may want to face higher rate debt first to save money on interest, in other cases you may want to give yourself a psychological advantage by first paying off the lower balances cards.

 

What is the average interest on a credit card?

 

What is the average interest on a credit card?

 

Compare all of your debts and expenses based on your income. When examining your debts and expenses, you should consider items like rent or mortgage mortgages, credit card balances, debt with loans, car financing and accounts with purchases.

As for your income, consider your salary, the interest earned on your savings, and anything else that generates money.

 

2. Prioritize your expenses

 

2. Prioritize your expenses

When tracing how you will get rid of debt from the cards or credit cards, be sure to address the basics first, according to financial advisors, and companies that provide financial advisory services specializing in debt settlement – basics include power , housing and clothing.

Be sure to pay at least the required amount on secured debts like secured homeowner loan and vehicle loans. These types of debt secured by a good (sometimes if not paid has a not very nice “collateral” effect), especially if it is a car, house, apartment or land. If you fail to make the agreed payments under contract, you may lose the good that is securing the loan.

In addition, the debtor should focus on repaying debts from the card and also personal loan debts , if it is business, never fail to pay suppliers, working capital financing and any kind of credit to companies taken in banks, financial or cooperatives. Non-payment in 100% of cases generate credit restrictions for future requests.

3. What to consider for not having debts

Consider not using your credit cards while you are working to cut your debts. Paying some purchases and expenses with cash or debit card can ensure that you do not accrue or generate more debt.

To get out and clear debts from the card

The ideal when trying to repay debts from the card and other financial pitfalls is to have discipline and emotional control to make no more debt, no matter how small.

Most importantly, make sure you make all the necessary minimum payments that you have proposed in the coming months, at least in all outstanding, negotiated or non-paying debts.

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