Part II - 7 Powerful ways how reduce credit card debt that you can implement NOW
Part II

We’ve broken the 7 Powerful ways how reduce credit card debt into 3 parts to make it easier.

back to Part I - 7 Ways Reduce Credit Card Debt

Understand the basics of Compound Interest
Minimum Payment and what this really costs you – Did you really want a 30 year loan?

7 Powerful Keys to reduce card debt
1. Cash out your savings account
2. Pay more than the minimum
3. Compound your payments

Part II - how reduce credit card debt

4. Borrow against your life insurance
Some life policies will let you borrow against them and it’s only a nominal rate. Once you’re debt free from cards you can use the same strategies to repay this too.

5. Get a home equity loan
If you own your own home then as the value of your property goes up, equity is created which may be able to be used to clear your unsecured credit debts. There’s a couple of traps here. Most common trap is that now the credit cards are cleared up, they get run up again. If you clear them off, reduce the limits and get rid of all but the most essential (meaning one or two cards). How many cards do you really need? Next trap is that you go and spend the monthly payments that you’ve saved rather than using them to overpay and reduce the loan. Remember, it’s got to be paid back eventually. All in all a very worthwhile step as the interest rate is significantly lower than credit card or personal debt and the interest saving can be used to further reduce the debts.

6. Approach family and friends
This is a great place to raise a bit of cash just to get the ball rolling in the right direction. Word of warning though. Family and friends may tolerate the late payment or two but it’s also the quickest way to ruin a relationship. Pay them interest on what you borrow and pay it back on time. Put it all in writing so everybody understands where they’re at from the start. Remember; they’re doing you a favour so do the right thing by them.

Part III - Ways Reduce Debts Credit Card Debt Final Step

7. Renegotiate terms with your creditors.
Use the ultimate threat of personal bankruptcy to negotiate. Use credit arrangements, CCCS companies, IVA’s and the final step of bankruptcy.

These are the Key 7 ways how reduce credit card debt. Apply these and you can't go wrong. BUT! and isn't there always a but?

If all this fails? – When to sell your home – the seriously tough call.

Sometimes time is really against you and the stress of managing all this can become too much. That's when it becomes a serious option to sell your home, wipe the slate clean and start again. consider it a lesson learned. Think how quickly this money will accumulate if it's put into a savings or investment rather than paying interest to lenders.

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