Paying Off Your Credit Card Debt

If you are like most people, you probably have some type of credit card debt. Yes it can be very overwhelming and can have you feeling hopeless. Though you might be embarrassed to discuss your debt with your friends or family, everyone has got to start somewhere. Unless your debt is just ridiculous and out of control, you might need to get help professionally elsewhere, otherwise you can take some simple steps to get control of your debt. With hard work and discipline you can slowly get yourself out of that credit card debt.

First thing you need to do is to put away those credit cards so they aren't easily accessible to you. I don't really recommend cutting up your cards, but putting them away somewhere safe is good enough. This will prevent you from buying unnecessary items that you can go without. Having just a debit card or cash on you will allow you to buy things you can afford and need at the time. Next you need to determine what you can do to earn extra income. Anything goes here, swallow your pride and trade in that expensive chick magnet  of a car that we all love to drive and get a cheaper but still reliable car. Think about anything that you can do that can earn you that extra income, as long as it is legal of course. Maybe you can get some extra hours at your job, earn that overtime pay. Cut down on your entertainment spending, eating out, going out to movies, hanging out at bars with friends. I know all these sacrifices will be hard to make, but for a few months you can do without. You will feel a lot better spending your money on all the above when you know you can afford to.

Finding items that you no longer need or haven't used in quite sometime is a good place to start. You can sell those items on ebay, pawn shops, or even friends that might be interested in them. Old cell phones that you will probably never use could also get you some extra money in your pockets. Donate items if you can't find a place or person to buy them, then later you can file them on your taxes and earn a return for those items. Recycling is another option, might not earn much but recycling cans, plastic, metal whatever you can think of will get you extra cash. If all the above fails, maybe you have a little bit of a savings saved up. If so you can use some of that savings, whatever you can afford to use to pay off some of that credit card balance. The interest you are paying on your credit card will most likely be more then what you earn from your savings account, so it only makes sense to use that money towards your credit card balance as you will still have access to that money if you need it for an emergency.

Okay, now that you have determined a way to get that extra cash to help you pay some of that credit card balance, you will need to come up with a plan. What cards do I need to pay off first you ask? You should start paying off the cards with the highest interest first. You will end up saving quite a bit of money from the interest just by reducing that high interest credit card balance. Continue to pay off the minimum payment of all your other credit cards but pay a little bit more on the one with the highest interest. Reward yourself after paying off that first card, nothing major just a little something that will make you feel good. Continue this over time and you should be good to go. This will take sometime, all depending on how much in debt you are. If you feel like you have too much debt and you don't think that you will make any progress soon then an equity loan http://banking.about.com/od/loans/a/homeequityloans.htm might be another option available to you if you own a home.

Main thing to getting out of that credit card debt is to develop some type of written plan that works for you, follow that plan, stay patience, and over time you will begin to see results. At the beginning it will be very frustrating, but once you start to see you balance get lower and your credit score start to increase, you will know that you are doing something right. Once you get where you want to be financially, make sure you don't slip up and end up in that bad debt situation you were in to begin with. Good luck to all that are working to improve their credit card debt, and whatever plan you choose, hope it works for you. Feel free to share your plans with me here on my blog.

Credit Cards 101

Credit cards, just about everyone has one. They are very useful and provide convenience in your everyday life and those emergencies that are always going to come up in your life. At the same time those little cards can be one of your worst nightmares when it comes to your finances. That in mind I am going to go over some of the basics of credit cards with you, for those acquiring your first credit card the information below could help educate you on the basics of credit cards.

What is a credit card and how does it work? A credit card is pretty much a loan that is given in the form of a plastic card issued by a bank or credit union. The credit card once issued is assigned an account number and given an initial line of credit that you can use to purchase goods and services where ever your card is accepted. Every time you make a purchase you will be given about twenty-five days (Grace Period) to pay off that amount. If you fail to pay off that amount then the balance you carry will incur an interest charge. You have to make sure pay at least your minimum amount and to not to go over your credit limit. Making a late payment or going over your credit line will result in a late fee and and an over the limit fee to be charged to your account, those fees vary from one bank issuer to another.

If you have just graduated high school and just about to start college, you will most likely start to see a lot of credit card offers in your mailbox. This age group is one of the most targeted among banks issuing their credit card services. Before you apply to one of those offers, think about how you attend to use the card. If you are a student, then student credit cards http://www.creditcards.com/college-students.php are going to be one of the most attractive offers right now. If you aren't a student then some factors you will need to think about is, do you plan on paying of the balance in full each month or do you plan on carrying a balance and pay towards your balance over time? The annual fee will be important to you if choosing to pay off your balance in full, while the APR will be more important if you are going to pay off your balance over time.

If you have excellent credit then credit cards could be your best friend if used wisely. With a credit card you have the convenience of not having to carry cash everywhere you go. You have the ability make purchases online at your favorite retailers, make payments over the phone, and even transfer money between two people via Paypal, Person2Person, Bump Money feature available with some card companies like ING Direct https://www.ingdirect.com/referafriend/?save=3ezNS9rc2f   and other services and features available through other banks. With excellent credit, you will get to enjoy low interest rates, no annual fees, and reward points. If you qualify for a gold or platinum credit card, then you get to enjoy even more benefits like travel insurance, extended warranties on products you purchase, collision insurance when you rent a car, and even personalized deals offered by Capital One where if you spend a certain amount at a retailer, then you will earn cash back to your account at the end of the month.

Now if you have damaged credit, then your experience with with credit might be a little different. Have bad credit or no credit history will make it a little more difficult to obtain a credit card, but you will still be able to get one. The cost to you will be more, and your terms will not be as attractive as those with good credit. Your first card might only have a credit limit of $500 and you  interest rate will most likely not be lower than 20% APR. You will need to do your research and choose whatever card is available to you based on your credit situation. Be smart about it and avoid cards that require you to pay a monthly maintenance fee just to have the card. If all fails and you still can not get approved for a credit card, then you will have to consider having someone cosign for you. Just make sure if you do go with this option and someone has agreed to cosign for you, that you make all your payments on time. If you don't think you will be able to make a payment on time then let your cosigner know ahead of time, so payment arrangements can be made. You wouldn't want to put your cosigner in a position where their credit is in jeopardy of getting ruined just because of you being irresponsible.

In conclusion, just about everyone will need a credit card at some point in their life. So why not start early, educate your self as much as you can, and make smart decisions when accepting credit card offers. You will need to build a nice credit history to help yourself with future purchases of things like automobiles and housing. Continue to make your payments on time and don't get in over your head with credit card debt. Try to limit the amount of credit card offers that you accept. Take advice from those who already made mistakes in the past and that have excellent credit now, you will learn a lot from them.