An estimated 31 percent of every credit card company's profits
come from fees. The average American family has over $8000 in
credit card debt. Making only the minimum payments, it will take
over 30 years to repay this debt, and that is only if no more debts
were incurred during that period. Here are a few tips to help you
repay your credit card debt faster and avoid incurring more debt:
1. Put your credit cards away and use them only in
the event of an emergency. If you want to make a purchase, wait
until you can afford to pay cash.
2. Make a list of all your debts, starting with the
one having the highest interest rate. Use as much of your income
as possible to pay off this debt. Do the same with each debt you
have, listing the debts by the amount of the interest rate.
3. Watch your budget carefully, using any extra cash
you can find to pay towards your debts. Systematically paying off
your credit cards one by one will allow you to become debt free more
quickly and start saving for your retirement.
Credit card debt is the reason for the majority of bankruptcies and
defaults in this country. If you develop a plan to pay off your
debts one at a time, and incur no new debt in the process, you will
eventually become debt free and begin living a life of financial
freedom.
