Are You Drowning in Credit Card Debt?

Have you maxed out your credit cards and can’t pay more than the minimum repayments?

Have you ever looked at your credit card bill and seen the formulas for paying off the minimum amount and how long you will retain your debt compared with paying it off more quickly?

The problem with credit card debt is that the interest rates are so high, unless you use your credit card and pay it off each month, it is very difficult to get ahead.

The number one tip to manage credit cards is NOT to have them! Yes, I know, that’s not very helpful is it, if you have credit card debt.
So here are my three tips to get rid of credit card debt.

Ring your bank.
Tell them you’re wanting a reduction in the interest rate. Tell them that you will move banks if they can’t help you. Be firm and ask for help. A friend of mine did this recently and had her credit card interest rate reduced from 24.99% to 7.99%. If you don’t ask, you don’t know. It’s worth a try, right?

Roll your credit card debt into a 12 month zero % interest card.
They are available and the idea with this is that you will not continue to use credit but smash out the debt over the 12 months without having additional interest added to the debt. Then cut the card up!

Pay off the most expensive debt first.
The highest interest rate – it doesn’t mean you don’t pay anything off the others, but pay more off the most expensive debt. Then cut up the cards!

It is so easy to get caught up with having what everyone else has but it doesn’t have to mean that you are imprisoned by credit card debt and the weight of owing the banks money. Take charge and take control.

When my parents got married, they didn’t have credit cards. It was a good thing. It made them “make do”. They had empty tea chests as coffee tables with tablecloths over them. They had second-hand furniture or hand me downs. They were happy with that. They could afford that and didn’t have to keep up with anyone else and everyone was in the same situation. It’s in your hands!

If you need help in managing your debt, setting a budget or simply understanding how to manage money more effectively, sign up to my ½ day workshop “Money Worries Gone”. If you’d like a more personal approach, I offer one on one mentoring as well as a 6 week group online program. Get in touch now and let’s work towards financial freedom.