Tips To Pay Credit Card Debt Without Using Any Consolidation Program
It is true that a genuine can be an excellent way to pay credit card debt, but that is not the only solution available out there for you. There are plenty of alternatives that you can try to get rid of the mounting debt problems. If you are unable to find out a genuine credit counselor or debt settlement agency, there is nothing much to worry about. You can still achieve your financial goal efficiently; all you have to do is just to follow these tips.
Prepare A List
First of all, you must be well aware of the severity of the debt problem you are facing. In order to get a clear picture in this regard, you should prepare a list of all credit cards that you have, the amount of money you owe on each card, the rate of interest, and the minimum monthly payment.
Do The Math
Using the information you just noted down on your notepad, the next thing you have to do is to find out how long it will take to pay credit card debt if you keep making just the minimum monthly payment. Once you find that figure, roll up your sleeves again and find out how sooner you can clear your debts if you pay $25, $50, $75, $100, or even more in addition to the minimum amount that you are required to pay. When you do this calculation on paper or by using a spreadsheet on your computer, you will be able to see the plan – the calculation will tell you if you pay a certain amount of money extra every month, you will be able to achieve a debt-free life much sooner (you will know the due date). Alternatively, if you want to pay off all your debts within a certain number of months (such as within one year), you should do the calculation and find out how much money you will need to pay every month in order to achieve your goal. Depending upon your specific preferences, you can plan accordingly.
Make A Detailed Plan
Make a detailed plan to pay credit card debt. This plan should explain how much amount you are required to pay every month on every card. You should put the high rate debts at the top and try to pay it off first. Get this plan printed on paper and keep it with you.
Do Some Tight Budgeting
You have a plan now, but probably what you do not have is the extra money you are supposed to pay every month. For this, you will have to do some tight budgeting. Even if that means frugal living, you should go for it. If even by cutting down your expenses to minimum, you are unable to arrange the required fund, you should consider getting a second job.
Overall, in order to allow this plan to work, you will need that strong dose of determination and financial discipline. In fact, this statement is applicable even if you consider using a program to pay credit card debt.