So you've looked at your financial situation and decided it's about time you did something about your debts. The first thing you need to discover is the different methods that you can employ to eliminate credit card debt without bankruptcy.
In general you will find that the recommendations you are given for eliminating the debt you have on your credit card fall within 2 general categories; debt consolidation and expenditure control. Here I will go through them both and suggest some recommendations that you can follow in order to eliminate your credit card debt.
Debt consolidation
Debt consolidation is one of the first steps that you actively take to eliminate credit card debt. Shifting from credit cards with high APR to low is a very good idea, but there are some important considerations that you need to make before going ahead with this:
- a) Always read the terms and conditions and the small print on the balance transfer offer. You need to know all of the details and not just those that appear at face value before going ahead.
- b) Take a look around at many offers before deciding on any particular one. There are many offers out there so you are certainly not limited to a couple of choices. Analyze the various offers and carefully decide upon one that is most suitable for you. Important things to consider for your credit card elimination plan: Standard APR, Initial APR and Initial APR period.
- c) Make a comparison of the other benefits that may be available with your offer. For example reward points, and rebates should be considered before choosing an offer that's right for you.
Expenditure control
In order to successfully eliminate credit card debt you must be able to control what you spend. Failure to do so will result in you needing to loan more and more money from your bank card. The reason you are in debt on your credit card is most likely because of uncontrolled expenditure or being in a position to spend more than you can afford. Preventing further debt accumulation is very important if you are serious about eliminating credit card debt. I will suggest a few recommendations for you to begin controlling your expenditure:
- a) Prevent unplanned expenditure by leaving your credit card at home. Many items that are purchased on credit cards are on spur of the moment decisions. There are so many sales and seemingly "irresistible offers" in stores that it is easy to spend money on a credit card and delve further into debt without pre-planning. Prevent this altogether by not having your credit card in your possession.
- b) Work out a weekly/monthly budget that you can stick to. This is a very important measure in your debt elimination plan. If you shift from this budget you stand to slip further into debt again, so decide on your budget...and stick to it.
- c) Stay away from stores that you know will have attractive offers. As you know, many stores will have sales and offers at certain times of the year. Don't get into a persuasive mentality. It's sometimes difficult to resist an offer which seems really good but if you don't REALLY need it, don't buy it.
Effective credit card elimination depends on discipline and proper planning, so make your plan and make sure that you stick to it.
