Learn 7 Powerful ways reduce credit card debt that you can implement NOW

Let's break the 7 ways reduce credit card debt into 3 parts to make it easier.

Part I. of 7 Powerful ways reduce credit card debt

The first thing is to understand 2 very simple concepts to reduce card debt faster before you even begin.

Firstly, Compound Interest
We’ve all heard the term but what does it mean and how does it affect me.

Lets ask a simple question.
Which would you prefer?
£1 Million now. Today
OR, 1 penny today, doubled tomorrow and then doubled again each day for 30 days.

Which would you prefer?

Answer: 1 penny doubled for 30 days is worth £5,368,709.12
That’s the power of compounding.

What does this mean to you?
Ok, that’s dramatic and interest isn’t doubling each month, but think about it. Each day of every month interest is being added to your credit card and interest is being charge on the interest. Interest is then charged on the interest on the interest!!

Secondly, Minimum Payment
It’s so attractive to only pay the minimum. That’s why it’s there. Would you be so happy if the bank told you that the new dress or golf clubs you were buying was an 8 year loan? That’s the reality of making the 2% minimum payment on your credit card.

That’s how long it would take to pay it off, even if you never spent another penny.

Now, 7 ways reduce credit card debt.
1. Cash out your savings account
This has to be one of the first steps to take. We all like to keep some savings in our current account for a “rainy day” but it just doesn’t make sense. While you earn 1-2% per year on these savings accounts, even a high yield account of 6-8% doesn’t make sense if your credit cards are costing you 18%. Use whatever savings you have to clear as much debt as possible to get a jumps start on the reduction process. If an emergency (rainy day) does occur, you have the credit card there as a reserve.

2. Pay more than the minimum
Most people with some diligence and sacrifice and by utilizing a spending plan will find surplus cash. Freeing up 5-10% of your income for a short time to dramatically clear your card debt isn’t as difficult as it seems with the right tools and strategies.

,b>3. Compound your payments
This is the strategy of combining the minimum payment on one card once it’s paid off, onto the next card to reduce that card.
Consider how powerful this is. Imagine you’ve got 5 credit cards (which isn’t unusual) each with a minimum payment of £40 per month. After clearing the 2 smallest cards you would now be paying £120 per month off the 3rd card. Add to this any savings you can pull from your spending plan and your credit card will disappear in no time.

Part II - how reduce credit card debt

4. Borrow against your life insurance
5. Get a home equity loan
6. Loan from family and friends

Part III - reduce debts credit card debt

7. Renegotiate terms with your creditors. Consumer Credit Counseling services (CCCS) Debt Arrangement IVA Bankruptcy

These are the Key 7 ways 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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