Reduce Credit Card Debt on Your Own and Take Control

Reduce Credit Card Debt- Credit Cards

To reduce credit card debt is the usual course of action for people who have incurred tremendous debts due to either negligence or uncontrollable economic situations.

Actually, credit cards are supposedly one of the best financial tools to provide you with convenience and safety in purchasing goods and services.

Credit cards also allow you to purchase on credit without interests if the total amount of your purchases is paid on due dates.

However, the ease and convenience in purchasing goods and services sometimes tempt you go overboard and find yourself in great struggle to pay off your credit card debts.

But, don’t despair if you are having troubles paying off your debts; there are still ways on how you can reduce credit card debt on your own and take control of your finances.

What you need initially is discipline and determination to achieve your goal of being debt-free.

The different steps and methods are easy to follow if you have a willing heart to control your expenses and the interest to learn how to do them.

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Do You

  1. Have more than $10,000 of credit cards, personal loans or other unsecured debts.
  2. Be able to afford a minimum payment of $300 per month.
  3. Have your statements available when calling.
“Call 877-459-3829  ” to get a Free
Debt Consultation from CuraDebt.” 

Steps to Reduce Credit Card Debt and Take Control of Your Finances

1. Create a Monthly Budget

Reduce Credit Card Debt- Credit CardsThe first step in taking control of your finances and to reduce credit card debt is to determine where you stand.

If you don’t know where you are at with your cash position and expenditures, you wouldn’t know what to control.

Creating a monthly budget is your first task to determine your financial position.

Make a list of all your income sources such as after tax wages, interests from savings and time deposits, dividends from shares and investments, and others.

Then, on the other side of your notepad, list all your monthly expenses.

Start with the basics such as rent or mortgage payments, utilities (electricity, water, telephone service, Internet, cable), insurances, gas and vehicle maintenance, food and health.

After the basics, list the non-basics such as travels and vacations, shopping and clothing expenses, eating out and movies, other entertainment expenses, gifts, and others.

When the list is completed, add all income sources on one side and add all expenses on the other side.

2. Analyze Your Monthly Budget to Reduce Credit Card Debt

Reduce Credit Card Debt- Credit CardsIt is common for people to create a monthly budget and don’t use it to monitor their finances.

Budgeting is a helpful tool in maintaining your finances in control if properly used.

From your list, deduct the total for expenses from the total income.

If the answer is positive, you can have a budget to payoff your credit card debts.

But, if it is negative; you have to cut back on your expenses.

With a negative cash flow, being frugal is essential.

The only thing you could do with basic expenses is to try to minimize them by using utilities wisely, planning your trips, creating a menu plan, and others.

The non-basic expenses are where you can cut back more to generate the needed cash to pay off your debts.

Minimize eating out, don’t go shopping not unless necessary, and lessen travels and vacations.

3. Make a Schedule for Paying Off Debts

Reduce Credit Card Debt- Credit CardsRemember that your goal is to reduce credit card debt.

Therefore, all your efforts should be geared towards having funds to pay off debts.

List all your credit card balances, if you have more that one; starting with the card that has the highest interest rate.

On the other side, list the minimum balance for each card.

Add the amounts for total balances and the amounts for minimum balances, separately.

You now have the amounts you need to provide for in order to pay off your debts.

Check your cash flow, if you are able to pay the total amount due; that is good.

If not, work on paying the card with highest interest first and pay the minimum amount for the others.

Repeat the process monthly for paying off your credit card debts until you are able to pay everything.

Even if you are finished paying off your debts, refrain from overspending and unwise use of your credit cards.

This is how to take control of your finances.