May 01, 2009

How to pay off your credit card debt

In this financial crisis, I think the best financial decision of a person’s life is paying of credit card debt. Because credit cards interest rate is so high that most of people stepped into the credit card debt. So if want get out of debt, first of all you need to pay off credit cards balances completely. Watch this video and read the following steps, I think that will surely help you out.



1. Try to completely stop your credit cards transactions: First of all you should stop your credit cards transactions, because you will never get out of credit cards outstanding balances. The interest amount will add up day by day and it will be impossible to pay full.

2. Try to pay full or more than minimum payable amount: Always try to pay more than minimum payable amount of your credit cards bills. Because paying minimum amount of bill of always makes you to pay high interest. So if you pay full that would be the best, other wise pay as much as possible to reduce the interest. The best option is pay full amount of the bill whose interest rate is higher than others and do not forget to pay minimum of other credit cards of yours. If one’s all outstanding is over then pay the next highest interest rate credit card.

3. Negotiate with credit card creditors: Contact with you Credit Card Company’s customer care Executive or Manager and ask for your lower interest rate. In most of the cases they are able to low the interest rate. The reduced interest will help you to pay off debt quicker than before. One more important thing is that if you want to close your credit cards, at first pay complete outstanding balance and then close it up. Here my advice is that try to stop credit card transactions and starting purchasing by cash or debit cards.

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