Dealing with bad credit card debt is not something one looks forward to. Bad credit card debt affects more than one-half of the world, and takes not only a financial toll, but an emotional one as well. The strain of knowing you have this debt can cause sleeplessness, headaches, and stress. By dealing with bad credit card debt head on, you can begin to improve your credit and eliminate further problems.
Instructions
- 1
Gather all current credit card statements. Place in a pile, from largest balance to smallest. At this point, pay no attention to interest rate or available credit, simply look at the current balance owed.
2Go through the pile and make a list of your credit cards and their respective balances. Seeing this on paper will help you stay focused. List these amounts in the order that they are stacked, lowest balance to highest balance.
3Add up the minimum payments due each month on each card. This is the amount you must budget into your household budget. However, by paying only the minimum you will barely pay down the debt. Find where you can add extra money to go towards paying down these balances, even if you must give something up in order to do so.
4Pay the minimum on each credit card, except the card with the lowest balance. Put all your extra money towards that card. Some experts say you should pay off the one with the highest interest rate. A statement which I agree with, but only after you have totally paid off your lowest balance card. The reason is simple, you will feel success and achievement once a card is completely paid off. This is a great feeling and will help you feel better about yourself, and keep you motivated to continue.
5Cut up all your credit cards, except one you may want to keep for an emergency. Stick that one credit card into the bottom of your sock drawer, or in another safe place. Do not carry it with you or leave it near your computer where you may be tempted to use it. Adding more debt will defeat the progress you've made so far.
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