The most important step to reduce and pay off your credit card debt is to first identify which cards to pay off first, which cards have to be closed, which ones have to be left open, and every truth about the balance transfers.
All these hints can really play a magical role in reducing your credit card debt.
Few Instructions:
One should develop a habit of not missing any payments and not going over credit card limits. Dare you fail on this step, you will be charged with heavy penalty fees. Also your finance charges will increase and your mistakes will come on your credit reports. If you are short of cash to pay your minimum, then try to redirect payments from other places.
If you are paying your minimum fee on a card continuously and never go over your credit limit, then you must call up your credit card company and request them to reduce your finance fees. Remember, calling is always a better option than mailing as here you can make a personal request to someone who might understand your situation. We suggest you to pay 12 consecutive minimum payments on your card before making any kind of request regarding decrease in interest rates. Even if they deny you, keep asking them as it never hurts to ask. Interest rates are affected by your credit. So, if you improve your credit history you have better chances to improve your finance charges.
Always put extra cash in your credit cards first. Even though there's lot of pressure to put money in savings and investments, you should always opt to pay your debts first.
Another option or way is not to open more than 3 credit cards at any point of time. It actually improves your credit card history. It also reduces the risk of identity theft. If you have a large number of credit cards, close the one's with highest interest rates.
If you are paying off to numerous cards simultaneously, mainly you would like to put extra payments towards the card with higher rate of interest. Here you should try to pay the minimum on the other cards until that card is paid off completely. Now if you have the multiple cards with the same rate of interest, first pay the one with the smallest balance. If you are using your credit to pay off your debts, use the card with lowest rate of interest and has available funds.
Always take caution before transferring any balances. Usually what happens is that cards with 0% finance charge balance transfer cards offer have fine print rules, but they can work to your advantage. Always use your 0% programs only if you are sure that you can pay off the transferred amount within the time limit. Another thing to always take care of is to know that there is often a fee with balance transfers. Mainly the fee is a one time charge of 5% of the amount you are transferring. Always calculate, as it may not always be a good idea.
When you plan to get new cards (after you are over with your debts), avoid cards that charge annual fees. These days many cards offer airline miles and points, but the better deal is the one where you are offered cash back for all your points. So always wait before going for any new cards, because first you should improve your credit and maintain it properly.
Few Tips and Warnings: Few people always prefer to list their debts by the order of the interest rates and pay the one with the highest rate of interest. This can actually save a couple of months off of your debt repayment and save some money in interest. However, some people feel a rush when they pay off a credit card which is easier when your smallest credit card is receiving all of the financial attention.
For more information on how to reduce credit card debt, opt for http://www.ehow.com/how_2330584_reduce-credit-card-debt.html
Article Source: http://EzineArticles.com/?expert=Manpreet_A._Kaur
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