What is the Debt Snowball Debt Reduction Plan?

By Mark Loy

The only criticism toward Dave Ramsey's method for achieving financial peace is that it is to conservative. It would seem that this could be agreed upon but unfortunately most American's do not have the discipline that it takes to pay off their credit card every month and the result is Dave Ramsey's extremely conservative approach to debt.

This article will be going into detail about the debt snowball method of paying of debts. The debt snowball method for paying off your debts is probably the most basic and most important step in someone's quest for financial peace.

When implementing the debt snowball method the plan is to organize your debts so that you can setup and easy, manageable, and results oriented plan for paying off your debts. The debts to pay off include credit cards, car loans, student loans, pay day loans, and personal loans. It essentially includes any debt that you have aside from home mortgage.

The first part of the debt snowball plan is to setup a spreadsheet that lists all of your debts in order from the smallest to the largest. After creating this list you need to put as much of your monthly income as possible toward paying off your debts. After determining how much you can put toward your debts you then need to determine how much your payment should be on each account. In the debt snowball plan you will pay only the minimum payment on each debt you have, except for the one with the lowest balance (at the top of your list).

When you do this it will allow you to pay off the smallest debt very quickly and then move on to the second smallest debt. When you move to the second smallest debt you then allocate everything to that debt that was originally going to the now paid off debt. After you have paid off the this debt you will then move on to the third smallest debt that you have.

In using the debt snowball plan the idea is to continue with it until you have paid off all accounts that you owe money on, except for you house. The ideology behind the debt snowball plan is to gain steam and see real results by paying off the smaller debts first. This allows you to see real results and continue to stay motivated.

Below I have included an example of the debt snowball method

Ignoring interest rates, let's say that someone has the following debt and minimum payments:

Car Payment - $2500 balance - $250 minimum monthly payment

Card A - $250 balance - $25 minimum monthly payment

Loan - $5000 balance - $150 minimum monthly payment

Card B - $500 balance - $29 minimum monthly payment

Your minimum payments for all debt would be $454 per month. You would order your debts in the following order:

Card A - $250 balance - $25 minimum monthly payment

Card B - $500 balance - $29 minimum monthly payment

Loan - $5000 balance - $150 minimum monthly payment

Car Payment - $2500 balance - $250 minimum monthly payment

For this example we will assume that this person has $100 extra to put toward payments. This person would put that $100 toward Card A so that the payment for it would be $125 per month. The other 3 debts would then receive the minimum payments.

After Card A is paid off this person then would put the extra $100 toward Card B PLUS the $25 they were also putting toward Card A. The payment to Card B would now be $151. This allows you to pay off Card B very quickly.

Once Credit Card B is paid off, you would then send in the following to your car loan: $250 normal minimum + $25 that you normally sent in to Credit Card A + $29 that you normally sent in to Credit Card B + $100 extra. Your payment to Car Payment would now be $404.

In using the debt snowball method you simply follow the plan shown above until all of your debts are paid off.

The debt snowball plan is one of the best plans available for paying off the debts that you owe. It helps people to stay motivated through seeing real results and gaining momentum

Mark Loy is a self-made Personal Financial Advising expert who specializes in giving out free Personal Financial Advice over the internet. You can visit his Personal Finance Budgeting blog to learn more about the Debt Snowball Method.

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3 Ways to Reduce Credit Card Debt

By David G. Pasternak

Most people carry balances on their credit cards. Those lenders know this and rely on it, that is how they make the bulk of their money. However, carrying a balance can wind up costing you a lot more money in the long run. Below are a few tips to help you to reduce credit card debt.

The first thing you should do is to make sure that you pay your bill each month. Many of these types of lenders have clauses in their contracts with you that state they can raise your APR (annual percentage rate) dramatically if you miss a payment. That means the interest rate they charge you each month will be dramatically higher than what you are paying now, so your bills will be even higher. If you are having trouble paying your bills, contact the lender immediately. Often they will allow you to work out a payment schedule which will not impact your APR.

Next, try to reduce your outstanding balances. When you carry a balance on your card you wind up paying a lot more than just a little bit of interest on the item you are purchasing. Each month you carry a balance, you are paying interest on the interest charges you accrued previously. That is compound interest, and it really adds up over time. Is that thirty dollar item really worth a few hundred dollars? It can actually wind up costing you that much if you only pay the minimum each month.

Another thing to consider is switching your balance to a credit card that offers a lower APR. Before switching though, contact your bank and negotiate with them. They probably want to keep your business, and may be willing to match the offer you have from another bank for a lower APR. If not, consider switching. Just make sure to read the fine print. Often the banks offer an introductory APR for balance transfers, but that rate goes up dramatically after 6 or 12 months. If the later rate is higher, it might not make sense to make the change. Make sure to read the paperwork!

Finally, the hardest step... do you really need to buy that? Look at ways to reduce your spending for a while until you make inroads on your outstanding balances. The best way to reduce your credit card debt is to stop spending. Obviously there are things you absolutely need to buy: food, gas. But you can probably get away without that new pair of shoes, at least for the next month or two. If you delay your discretionary purchases for awhile, you can apply some of that money to your outstanding bills. Sure it is more fun to buy something than to save money, but you probably do not "need" that 50" LCD plasma HDTV right now. Your regular television probably works just fine. (And do not forget, HD reception costs more from your cable or satellite provider than "regular" television.)

Ultimately, you will rest much easier if you reduce your credit card debt. It is worth looking at these strategies and trying to implement them.

Click here for more information on how to Reduce Credit Card Debt

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How to Reduce Credit Card Debt - 3 Simple Ideas to Get You Started

By Suzette Jamieson

Do you feel like you are drowning in debt? While this may be of little comfort to you, you are hardly alone. But what can you do to reduce credit card debt?

Trying to get out of debt can be a lot like trying to lose weight. When someone needs to lose weight, there are really only 2 factors that come into play. You need to cut your calorie consumption AND you need to burn more calories through exercise ... with the ultimate goal being that you burn more calories than your body needs to function. Doing either one of those will help but will only get you so far. You need to do both in order to really be successful.

And it is exactly the same when you are trying to get out of debt. There are two parts to the equation - spend less than your income and use the excess funds to pay down your debt. Find ways to cut your expenses and then apply those savings to reduce your credit card debt. It sounds simple ... and it IS simple. But that doesn't mean it is easy.

Many times it is just simply a matter of making some small changes to the way you currently do things. Small changes can often work together to have big results. And by breaking things down into manageable chunks, the tasks immediately seem more doable.

Let's say for example that you know you need to find an additional $300 a month. That sounds like a lot, initially, but by breaking it down it becomes a goal you can meet. $300 a month translates into $10 a day. What can you do to spend just $10 a day LESS than you currently spend?

Even $10 a day may seem a little daunting when thought of as a whole, so let's break that down even further. What less expensive items could you adjust in your daily routine?

• Do you stop for coffee on your way into work? Try bringing it from home instead and see how much you will have saved. And if you get a donut or muffin to go with your coffee, those can also be brought from home for even greater savings.
• Do you grab a pick-me-up soda or a snack from the vending machine every afternoon? Again, by buying it yourself at WalMart, Costco or even the grocery store, you can easily spend half as much as what it costs from the vending machine.
• When they ask you at the fast food restaurant if you would like to super-size your lunch, just say no. Your waistline, heart and arteries will thank you for that! And if your big meal is in the evenings anyway, why not try the Dollar Menu that so many places have now? This is usually enough for most people, and many adults even order the kid's meal because it is cheaper than the adult version and is really all they need.

So be honest ... if you made those 3 changes (or similar ones), would you feel deprived? Would you feel like you were being short-changed in any way? Of course not. But think of the money you could save! $300 a month just by making 3 small changes to your workday routine. But don't stop there! See where else you can make small changes that will add up to big savings.

And while this method is simple in nature and relatively easy to implement, are these 3 tips enough for YOU to be successful in getting out of debt? Maybe you feel you need more help in being able to reduce credit card debt [http://dollaradaysystem.com] that is weighing you down. Our Dollar A Day system might be exactly what you need. Check it out at [http://dollaradaysystem.com] and be sure to sign up for the free mini-course to help you jumpstart your journey to debt freedom.

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How to Reduce Credit Card Debt, and Be Finally Debt Free!

By Adi Hartono

Ever since the economy went down many people have lost their jobs. Credit card companies have realized that a huge number of people are not able to pay off their full debt, so in hope of getting at least a part of the money owned they have been negotiating deals and cutting interest rates like never before. So this would be a good time to reduce credit card debt.

The first and most important step is STOP using your plastic money. If you already owe money and keep spending money on stuff that you can't afford you bury yourself in debt. If you can't afford something, don't use your credit card, just don't buy it.

Do whatever you can to keep yourself from using your cards. Freeze them, shred them or anything that will keep you from spending more money. An unpaid debt can have devastating results in your future. It can keep you from getting a car loan, school loan, house mortgage or even a simple department store credit card.

One mistake that most people make is they keep spending more and more money hoping that their debt will magically be forgotten or forgiven. Don't keep spending money on stuff you can't afford if you don't want to ruin your credit. It is important that you keep a clean record, and one way you can do so is when you reduce credit card debt.

Write down all of your credit cards, how much you owe to each one and the minimum payment for each month. Staying on track with your payments will help you reduce credit card debt faster.

The way credit card companies work they reduce your monthly minimum payment as your balance goes down so that it will take you more time to reduce credit card debt. Always pay more than the minimum payment.

If you cannot afford to make the minimum payments and you're trying to negotiate a deal with the company then stop making payments. If you creditors see that you are still making payments while trying to negotiate a deal, they'd obviously have little interest in reducing your debt.

After 60-90 days of not paying any money to your cards, start the negotiation for a deal. Tell them that you're going through financial problems and if they want any money at all from the debt you owe, they will have to settle for a deal.

Start low. Your first offer to reduce credit card debt will probably be refused, that's why you should start negotiation with a lower number than what you can truly afford.

It is important that if you come to a deal with your creditor to get everything in writing. You should always keep documentation for proof in case something goes wrong in the future.

Don't forget that most debt collectors are trained to be mean and intimidating, but don't be nervous when talking to them. Always stay calm and cool. Have a plan of what you're going to do and what you're going to say. Speak loud and clear and the chances of them agreeing to a debt negotiation with you will rise dramatically.

Another important factor is to keep track of your progress visually. This may help a lot of people stay on track and get rid of that debt for good. Try to write down all the payments you made and put it somewhere where you will see it many times during a regular day, like on your fridge.

Always remember to stay calm and focused. Create a list of your personal debts and what you can and can't afford. Don't leave everything for the last minute, act now. Use these tips and you might be surprised how easy it will be to reduce credit card debt.

Find more ways to solve your personal debt problems in http://www.SolvingDebts.com.

Eliminating your debts may not be as difficult as you may think.

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Reduce Credit Card Debt - The Best Tips to Reduce Credit Card Debt Right Now

By Thomas Valsayn

The majority of people living in the United States seemingly have a problem when it comes to using their credit cards. A lot of people have become very dependent on these plastic cards for their purchases. What's even worse is that some people never think about how they are using them and just swipes away. This is why now that the financial crisis has hit, a lot of Americans are having trouble with their credit card statements. These people are the ones who just kept on using their cards without thinking about it. Now, they are faced with the problem on how to reduce credit card debt.

The first and most obvious thing to do to reducing credit card debt is to of course, stop spending. You need to develop discipline in yourself and try to avoid impulsive shopping and purchases that are just not needed. You have to be frugal with your spending from now on. A few tips on doing this is to eat at home and cook your own meals instead of going out. You can also reduce grocery bills by making a list of what you need and sticking to that list only. There are a lot of things you can change to make huge savings. And remember, every little bit counts.

You can also call your creditor to try and negotiate for better payment options or to lower your interest rates. Successfully negotiating this will drastically reduce credit card debt. Your leverage is the same thing that has collapsed your personal finances, the economic downturn. Most banks are willing to negotiate better deals for you because they would rather lower your interest rates rather than get nothing at all. So try calling them up and negotiate. If you have no idea on how to do this, you can try and hire a professional to talk for you.

You can also reduce debt by paying more than just the minimum amount required by your creditor. If you simply pay the minimum, more often than not, you only cover the interest rate which means you are just throwing your cash away since your actual balance is not going down. Try to flow more cash into paying your creditor and you will see good results.

The core of any plan to reduce credit card debt you have accumulated is to budget your money properly. This is another reason why you are deep in debt, you did not budget your money and you spent unwisely. Now is the perfect time to change all of that. Budget your income and allocate on the needs such as rentals, utilities and food, then budget the rest on payments and savings. Although you are trying to reduce your debts at all costs, it is always good to still have a bit of money in your savings account for emergency purposes.

If all else fails and you can't seem to get rid of your credit card debt on your own, you can opt to hire professionals or the services of a third party to help you with this. Although this means money going out again, it can be a worthwhile investment if it means getting rid of your debt.

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Reducing Credit Card Debt - Tips on How to Reduce Credit Card Debt

By Mary Dawn

For those who have massive credit card debts under their belts and would like to see that amount dwindle away to nothing, there are quite a number of ways to reduce credit card debts. Well there are two most important things of course such as you having both the commitment and willingness to see that the problem gets solved. This also helps reducing credit card debt so much easier in the process.

A lot of people have been buried by mountains of debts and are looking for quick ways to reduce it and be done with financial problems forever. Especially since the amount you pay every month doesn't seem to make any difference whatsoever in the total amount that is due. No thanks to surcharges and late fees.

Now the first thing to know in order to reduce the amount of debt on your credit lines quickly is to pay more than the minimum amount that is required. Surprisingly, there are quite a few people who are aware of this. However there are options that are always readily available, yes, even for those who have been seeing doomsday since that last credit card bill was delivered. Now it is important to stay relaxed and calm and do not under any circumstances panic especially when you think about all the other payments that you have to make. There are three common tips to reducing credit card debt and doing it quickly:

* Pay larger amounts than your minimum monthly payment required. Yes I have mentioned this earlier. Avoid paying just the minimum monthly amount lest you be incurred with surcharges and late payment fees which add up to the amount of money that you originally owe. If you really need to use credit lines, try searching for a card that has lower interest rates.
* Try for home refinancing. This works to reduce your credit card debts in short lengths of time. You can go on and use the equity from refinancing your home to pay off the credit card debt.
* Make sure though, that before refinancing your home, everything to be done and the processes that you have to take is understood and that you will not under any circumstances; use your credit card to pay off the financing on your house. Seriously, that would be going around in circles, debt-wise.

As is true with any other techniques or ideas to reducing credit card debt, you will encounter negative and positive feedback and factors when it comes down to paying more and that includes things like home refinancing. And if all else fails, you can always go out and apply for a personal loan to get all your debts paid instead of getting another credit card that offers a lower rate; And then using that new credit line to pay off the previous debt on the first credit card. What was that I said about going in circles?

Nevertheless, reducing credit debt takes more research and thinking than you would care to admit. You have to take extra care in considering every situation so as to make the best choice. If you would want, a credit counselor would be happy to help you out and offer sound advice.

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7 Easy Tips to Reduce Credit Card Debts

By Rob Timothy

The following are 7 easy tips on how you can reduce and at the same trying to get out of credit card debts easily. A strong commitment from yourself is really required to make this goal come true.

Stop charging. Obviously, this is one of the first things you want to do. Unfortunately, most people fail to do with any conviction. It should seem obvious to anyone that the first step out of any hole is to stop digging. It is only after you stop making the problem worse that you can begin to devise a plan to get out of credit card debt. You may need to cut up your cards or at least take them out of your wallet and leave them at home. The point is to totally stop making new charges.

Transfer your card balances over to another one that has a lower interest. The lower the interest rate average is on your remaining debt, the larger the impact each of the payments you make will have on that remaining balance. You may also want to consider a credit card debt consolidation loan that has a lower interest rate.

Pay off debts from the smallest to the largest. You should make the minimum payment possible on all of the larger balances, except the smallest one, and then pay as much as you can on the smallest debt. This way will reduce your total debts slowly but sure.

Pay half of your minimum monthly payments twice a month. Interest calculations are based on the daily average balance of your account during the entire month. When you make payments every two weeks, you are actually reducing the average balance and as such you are also reducing the finance charges that are assessed. This way is more cost effective to reduce your credit card debts than waiting until the end of the month to make a single payment.

Make micro payments any time you receive extra money. Send the majority of any extra money you may receive, such as proceeds from part time or overtime work or garage sales directly to your credit card as soon as you receive them. Do not use that money for any other expenses. Although it may not seem like much but it does add up and soon you will get out of credit card debts.

Find part time works to earn extra income. Perhaps, this is the only option you may have to generate extra cash flow. This is, of course a last resort you can try.

Close your newest accounts. As you pay your credit card balances off, close out these cards if you own more than a card. When you close these newer cards you will effectively be increasing the average age of your credit history by at least five or six months of expenses. This way seems to be the best way to get out of credit card debts soon.

By following these tips above, you should be able to make progress towards freedom from your debt. If you are like most people and went a little overboard with your cards at an early age, you may also want to consider a low interest consolidation loan to pay off your debt at a lower rate. It really helps to reduce credit card debts and if you go this route you should cancel all but one card, and considering lowering the credit line on that one down to a manageable level. Should you fail to do this, you may wind up with more debts and it is very hard to get out of credit card debts.

I do really hope this short article would help to give a clear ideas on how to reduce credit card debts by using some simple and easy-to-implement solutions and at the end you can get out of your credit card debts.

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Credit Card Solutions - How to Reduce Credit Card Debt

By John Purfield

If you are heading into this uncertain economy by wondering how to reduce credit card debt, you are not alone. The majority of American households have credit card debt, and many thousands have way too much credit card debt. You may be thinking that there is no way to get rid of your credit card obligations, but there are available solutions to credit card debt.

You might consider negotiations with your credit card companies or banks. If you are in danger of being unable to meet your minimum payments, your creditors will most likely see the necessity of making alternative arrangements with you. Some of the negotiable items may include:

• A reduced interest rate
• Suspended interest on outstanding balances
• Elimination of annual fees
• Suspension of other fees such as over-the-limit charges and late fees

You might consider a consolidation plan that combines all your credit card bills into one loan. The advantages of consolidation may include:

• Easier budgeting
• Reduced interest rate
• Lower monthly payments
• Simple interest instead of compound interest
• A fixed period of time to get the loan paid off

Another option may be to contract with a credit professional. There are attorneys and accountants who specialize in helping folks find solutions to credit card debt, and they can often discover creative answers to the how-to-reduce-credit-card-debt problem. Some advantages of hiring a professional may include:

• Having an experienced person on your side
• Professional guidance and budgeting assistance
• Someone to negotiate with creditors
• Someone to ensure your bills get paid on time every month

If you want to take control of your debt and figure out a real solution to paying off your credit cards, the time to figure out how to reduce credit card debt is now. The options are out there; there are many solutions to credit card. All it takes is good planning and persistence.

There's no reason you should be embarrassed about being in credit card debt anymore. Get the information you need to effectively start reducing your credit card debt substantially. If you want to read more about how simple solutions to credit card debt can help you with reducing credit card debt, visit our reduce credit card debt [http://www.betterdebthandling.com/guides/index.php] page.

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Wiping Out Credit Card Debt - Fastest Ways to Reduce Credit Card Debt

By John Purfield

If you are searching for a way of wiping out credit card debt, you are not alone. Having too much debt is one way of hurting your credit score, depleting your personal finances, and having sleepless nights due to worry. Some of the fastest ways to reduce credit card debt are as follows:

First and foremost you want to stop adding to your credit card debt. So stop using your credit cards, no matter what. Just remember if you keep using your credit cards, your efforts will be counter productive.

Consider a consolidation plan. Consolidation loans or other consolidation plans can provide immediate assistance by wiping out credit card debt immediately and getting creditors off your back if they are hounding you for payment. At the same time, consolidation programs generally offer a single payment that is lower than what you were already paying by paying on each card every month. Consolidation plans also help you reduce credit card debt by providing ease of budgeting.

Negotiate with your creditors. Banks and other creditors realize that we are in a tough economy, and they also know that if you are trying to renegotiate your credit card contracts, you may be considering bankruptcy. It just makes sense for creditors to work with you rather than face the possibility of getting none of the money they are owed. Some of the negotiable aspects you may want to discuss are your interest rate, your minimum payments, the elimination of fees, and so on.

Hire a professional. There are attorneys and accountants and others who specialize in wiping out credit card debt and helping you reduce credit card debt. Usually, these professionals will set up a plan that allows you to pay one monthly amount to them, and they take over paying your credit cards for you. Often, the process also includes some amount of negotiation with your creditors as well.

Another way to reduce credit card debt is you can do it yourself. All you really need in wiping out credit card debt is a solid plan. Sometimes this is the best way to go because you are in total control of the amounts you need to pay out. This is helpful when you hit a rough month financially.

There's no reason you should be embarrassed about being in credit card debt anymore. Get the information you need to effectively start eliminate your credit card debt. If you want to read more about how using the techniques described above can help you with reducing credit card debt, visit our wiping out credit card debt [http://www.betterdebthandling.com/guides/index.php] page.

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Reducing Credit Card Debt the Easy Way

By John Stevenson

One position that many people find themselves in is a growing mountain of credit card debt. This can happen for several reasons. They can ignore the bills when they come in the mail, hurting their credit score and making interest payments shoot up. They can also continue to make purchases, however small, that all add to the problem. The following suggestions will help you reduce credit card debt.

Stop Charging and Start Paying

One of the most important suggestions for reducing credit card debt is to not ignore the bills coming in. You absolutely must sit down and start paying them because the problem is only going to grow much worse if you continue to ignore them. However, the manner in which you go about paying them is also important. For credit card debt reduction, we're going to take a look at the debt on individual credit cards instead of your total debt. Doing so will help you prioritize payments, and once you pay one card off, you'll have that extra money to start paying the other off as well.

Instead of a bunch of credit cards, I recommended you only own one or two low interest ones, especially if you're suffering from credit card debt. Once you have a few cards instead of many, look at the one with the lowest balance and focus on that one. To reduce debt, it's important to take baby steps instead of trying to tackle the entire problem at once. Once you pay one card off, you have extra money towards paying off the other. However, there is another strategy some people opt for to reduce credit card debt, and it involves paying more on the higher interest card. By reducing the interest payments on that card faster, you also get more money towards paying off the other card. Both strategies are more effective than trying to pay off both cards in the same time span.

Most importantly though, you should do all you can to avoid adding to the problem. That means doing what you can to use a debit card or paying in cash, both of which only use what you have as opposed to adding to your debt. Up front, the item costs the same, but over time the purchase can gain up to 200% of its original expense in interest. Reducing charges is another important step to reducing debt, and soon you'll be paying those credit cards off instead of seeing the bills continue to rise.

John Stevenson holds an MBA in Finance from the Simon School of Business. He specializes in helping families reduce their credit card debt and regaining their financial freedom. For information about reducing your credit card debt please visit: Crush Your Debt Today [http://www.CrushYourDebtToday.com]

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How to Reduce Credit Card Debt - An Effortless Plan to Reduce Your Credit Card Debt

By Daniel Ambrose

No matter how long you avoid opening the envelope which contains your credit card bill, you will still get annoyed. It will not help you come out from the financial mess you are in at the moment. The longer you do not pay, the higher the rate of interest will become, which is only going to increase the amount that you will need to pay. You will only loose time and more money, if you are waiting for a miracle to happen which will make your creditors lower the amount of debt you owe to them. The more you spend time in thinking how to eliminate credit card debt, the more your amount of repayment will increase. And as the amount increases, you will surely loose hope and gain an even higher level of stress. However, repaying your increasing bills could have been easier only if you had known better ways.

You must be wondering how to eliminate credit card debts. Do not panic, you will come to know this shortly. The very first thing you need to do is to gather all the bills you have received to date. By doing so, you will know how many months have you been billed for. This should not just consist of your credit card bills, but also all the other spending you have done on car loans, to the smallest things, such as your cup of coffee.

Now, you need to give some concern to the items you have listed so far. What you have accomplished today, is due to all the spending on these. You must prepare two different categories, which are "unimportant" and "imperative". By the time you are done listing the items under these categories, you will have a fair ideal of where did you go wrong? Set your priorities and follow them as this is one way of how to eliminate credit card debt. Also you will save money to pay the bills for the items you need to pay that are more important in each month.

These facts will be all black and white and easier for you to understand the situation better. Take the list you have prepared as a manual to limit your self from spending extra amount on unimportant items. Had you not spent unnecessarily, you would be having a fair amount of money to pay your credit card bills. If you always wondered how to eliminate credit card debt, then you have the answer on the paper in the form of the list you have come up with. If you have more than a single credit card, then you can use them more wisely by using one for the monthly debt and the other for small amounts. You will feel extremely happy once you become successful in making yourself credit card 'free'. Now you can help others by telling them how to eliminate credit card debt.

The outcome of this exercise certainly sounds good, but it can only be achieved if the person has the willpower to stick to the plan.

The Plan:

1) Identify ALL expenditures - Perhaps carry a small notepad for a month to write down incidental expenditures. But make certain you write down ALL expenditures.

2) Categorize all expenditures - Place two columns on a sheet of paper and name column one: Necessities (Rent, Mortgage, Lights, Gas, etc.,), then name column two: Non-Necessities (Soda Pops, candy bars, movies, etc.,).

3) Identify all credit cards and their interest rates - Place highest "Interest Rates" first, not highest card owed.

4) If possible transfer high interest rate cards to low interest rate cards. Important: Make sure there is no charges associated with a transfer that would make it a costly move.

5) Reduce The Debt - Reduce The Stress - Take all the money saved from the unnecessary spending in column two of your "Categorize all expenditures" list and apply it to the card with the highest interest rate until it is paid off. Then do the same to the next card on your list, and so on...

Important Note: Do Not Charge Any New Debt During This Process!

Final Note: If you call your creditors and explain your situation (perhaps there was a layoff or sudden loss of employment or etc.), and let them know you are creating a refined budget to get things caught up. Then ask them if they can help by suspending the interest rate on your card and removing some penalty charges. You might be very surprised to find they are VERY helpful. Perhaps not all will be helpful, but nothing lost by trying.

My very best to you dealing with your creditors. I know it can be stressful. If you would like to read more about dealing with creditors please visit Pay Credit Card Debt Off dot org.

To eliminate credit card debt, one needs to prepare a plan and stick to it to overcome the debt. For more information, regarding how to reduce debt, visit us at http://paycreditcarddebtoff.org and improve your financial condition, and leave the stress of the debt behind. I am the Author: Daniel Ambrose, and I have been there and I understand. Feel free to leave questions on my website and sign up for my free newsletter.

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How to Reduce Credit Card Debt

By Manpreet A. Kaur

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

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How To Slay Credit Card Debt For Good

By Joseph Wood

The numbers tell the story, and the story is that most Americans are carrying some kind of balances on their credit cards, meaning that they do not pay the balance in full every month. The amount of debt varies, but as of a few years ago (2002) the average debt for an American family with at least one credit card was almost $9,000.00, and that number seems to rise every year. The purpose of this article is to help folks to slay that beast for good.

There are some pre-requisites. Please do not skip these. The techniques that follow will not work as well or at all if a few pre-conditions are not met. Here they are:

1. All adult members of the household must be in agreement on the plan. This may require some compromise and tweaking of the plan. Do it if you need to. A tweaked unified plan will be more successful than a perfect un-unified one.

2. Immediately stop using the cards that have balances on them. You may continue to use a card if you pay off the balance on that card every month. Do not transfer what you used to spend on the other cards to the one that you pay off.

3. Most important, you must arrange your finances so that your total expenses are LESS than your income, counting all quarterly, semi annual and annual expenses into the monthly total. You simply cannot reduce debt if you are continuing to increase it! Not sure how to live on less than you earn? SIMPLIFY! You can solve this by increasing your earnings or reducing your expenses or both. Your choice.

4. Identify how much money is extra (after you have completed step three), and divide that monthly amount in half. Take the first half and arrange an automatic deposit to a high yield CD or online account, so that the money builds and grows there.

OK please do not proceed until you have completed the pre-requisites. Read ahead if you wish, but you MUST complete all four pre-requisites before you can be successful. That said, here is the plan:

1. Find a way to NOT focus on debts. If you are able to, spend as much time as possible feeling like you are completely debt free. I know it seems like a lie at first, but it is your future, and so it is not a lie. The number one step in freeing yourself from debts is seeing yourself free of debts, and experiencing it. Play a movie in your mind that stars you as the debt free person.

In connection, arrange your debt payments so that they consume as little of your time and mental energy as possible. For some this may mean to hire a third party to administer the debt payment program for you. This is really ideal, as you no longer even get the bills in the first place, making it MUCH easier to not focus on debt. One other thing if you have trouble still. Trying going mostly all cash for a couple of months. Really gives you a feel for how much you are spending, and is really good at showing you how much you have left.

It is impossible to increase your debt when you are using cash. Use debit cards for things where they make more sense, like the gas pump.

2. Now we get into the technical aspects of how this is done. If a third party is handling your debt payoff, just give them these instructions.

First thing is to list all of your debts in increasing balance order. Ignore the interest rates for now. The smallest balance debt will be listed first and the largest balance debt will be last.

3. Make exact minimum payments of all debts except the very top one. If you are doing the payments yourself, send the payment the very moment that you receive the statement. This is the best way to keep it out of your mind (because you will not see it again for a month), and it will make your creditor happy as well. You may also call all of the creditors and see if you can arrange the closing dates so that you get all of the bills within a short time frame. Just something to think about.

4. On the top debt, make the minimum payment plus the other half of the extra money from that month (you put the first half into a high yield account). This will accelerate the payment on that top one, and depending on the size of that balance, hopefully that one can be completely paid off in just a few months.

5. Once that top balance is paid in full, take yourself out to dinner to celebrate. Pay cash for the dinner! It feels really good to do so.

6. Apply the extra half, plus the former amount of the first payment, plus the minimum second payment to the second debt. The second debt will pay much faster now because of this, and yet there is no additional money coming out of your pocket.

7. The program continues in order. As one debt is paid, you simply pay all of the money that was going to it to the current top one, plus the minimum payment.

8. As you get closer to the bottom you find these debts reducing more and more rapidly.

9. The program ends when all the credit cards are paid off. If you have enjoyed this experience, then continue the program by adding any other debt payments, car payments, and finally your house payment(s) to the acceleration. Picture being entirely debt free! This program can do that for you.

10. Good Luck! Get started ASAP!

Joseph Wood is the webmaster and chief researcher for JOW Research. Come see us and learn The Secrets of The Secret [http://www.jowresearch.com/The Secret.html].

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How to Reduce Credit Card Debt by Paying the Highest Balance Card First

By Adam Tijerina

You can read a dozen books on how to get out of debt and find a dozen different ways to do it. The authors all have good intentions and want to see you out of debt as soon as possible. Today, I wanted to talk to you about how you can reduce your credit card debt by paying the highest balance card first.

With the highest balance method, you write down all your debts and put them in descending order from highest to lowest. You make minimum payments to every card except the highest balance one. With this one, you apply all available monies to this card until it is paid off. You do not worry about what the interest rates are on your cards with this method.

Then after the first card is paid off you take the next highest balance and apply all your payments to this one until it is paid off and keep making minimum payments on all other cards. You keep doing this until all your debts are paid off and you are debt free.

With this method, it will take you a while to see progress. It will take a lot of financial discipline to stick with this method. Because the rewards you gain will take longer to receive. But when you are able to knock out one credit card, that will be a significant portion of your total debt.

You can accelerate your progress by taking on a second job or doing freelance work from home to increase your income seeking more money to get rid of debt. There are plenty of free resources available to help you get started making money online with a low investment.

With the highest balance card first method, you can reduce your credit card debts in big chunks but it does take a while to see progress. If you have the financial discipline to stick to your plan and then you may want to try this debt elimination plan.

To learn how you can reduce your debt [http://www.howtoreducecreditcarddebt.com/] even faster visit [http://www.howtoreducecreditcarddebt.com/] today. You'll learn about the best methods to eliminate all your debt in as little as 2 years. Find out what to do if you are having trouble paying your bills on time.

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How to Become Credit Card Debt-Free

By Maggie Gee

If you are determined to get out of credit card debt, you surely can. Though it's a bit difficult, it's certainly not impossible. All you need,  is determination and planning. In essence you need to reduce your card debt and eliminate it before it assumes a horrifying shape. This is really the gist of the story.

So, how do you reduce card debt? Well, you reduce it by preventing it from increasing, and by paying off what it you currently owe. But can it be as simple as that? Not really. If it was that simple to reduce, then we wouldn't have had so many people with credit card debt related problems.

There is plenty of advice available on how to reduce credit card debt, but still nothing much seems to change. The problem still seems to persist or if anything, worsen. However, it need not be that difficult to reduce. You just need to take action and put that advice into practice in real life. After all, you are the one who will benefit if you do succeed in reducing your debt.

So now ask yourself:

· What will I have if I am able to get out of card debt?

· What difference will it make?

· Is it really beneficial to get out of debt?

Use the answers to build your determination. The fact that all the nagging via mail/phone (by the credit card supplier and/or their collection agent) will be gone, should go a very long way to strengthening your determination and resolve. This surely is the perfect reason why you should endeavour to get out of debt.

Think about the stress-free life once you are debt-free. Try to link various reasons together and see the benefits through them. Collectively these benefits will help in bolstering your willpower and prevent it from getting weak at any point in time.

Begin by making a list of the credit cards that you currently posses and noting the debt and the APR for each of them. The sum total of all these various credit card debts will give you the total credit card debt. So the first step to reduce your debt is to prevent it from taking dangerous proportions.

The two most important ways of implementing this step are: balance transfers and use of cash.

1. Balance transfer is really an effective way to reduce credit card debt, by slowing down the pace at which your debt is getting built up. It also provides you relief in terms of the APR being 0% for initial 6-9 months (and hence helps reduce card debt faster).

To reduce credit card debt using this mechanism, you need to transfer your balance from your current credit card(s) onto another credit card that has a lower APR. Thus you are preventing it from increasing so rapidly.

2. Whenever possible pay with cash instead of using your card. You will therefore be helping yourself by not adding to the debt. This must be the simplest method of reducing the balance on your cards.

Essentially you need make a few simple changes in your life:

· Control your urge to spend. Unfortunately this is a must. Stay away from shops with offers you simply cannot ignore.

· Leave your credit card at home.

· Prepare a monthly budget, and stick to it.

In the end success or failure will, however, be down to you. You are the only one who can actually reduce your card debt, so you need to keep your determination strong. This article may be copied and distributed, so long as the signature file and active links are also included.

Maggie Gee is a UK based Internet marketer, offering help for the real beginner. She is specialising in helping Newbies or Beginners in getting going with their own Internet Marketing business. Article writing is also a favourite. If you found the above article useful, please visit http://www.maggie-recommends.com where you will find unlimited help for the beginner. You will find Maggie's Blog at: http://www.maggie-recommends.com/blog

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Tips For Reducing Credit Card Debt - The First Step to Being Debt Free

By Marjorie Salada

Reducing credit card debt and then eliminating it is the only way that you are going to be debt free. It starts with admitting that things need to be different and then looking for a plan that will get you out of debt and sticking with the plan until it is complete.

Reducing your debt begins with stopping the charging. This will at least keep it from increasing. The fastest way that you can reduce your debt is to reduce your APR. This alone can save you thousands of dollars as you repay your debt. The easiest way to get an interest rate reduction is to call your credit card companies and ask them to reduce your interest rates. If you have been making your payments on time, they will normally lower your interest rate once a year.

Another way of getting an APR reduction is by transferring your balances to a low interest rate or 0 percent interest rate card. This will save a lot of money, but now you will have available credit on the card that you paid off. For many, it is tempting to charge on this account and many people do and this presents an even bigger problem.

Credit counseling also offers substantial interest rate reductions on your accounts. Debt counseling is a nonprofit organization that consolidates your debt without a loan. You will make one payment each month to this organization and they will disburse it to your lenders. The APR reduction and the methods the debt management company uses to repay your debt will have you debt free in about five years.

Reducing credit card debt will help you, but your ultimate goal should be to pay off your credit card debt and be debt free.

Debt can be very scary and sometimes it just takes being shown the right direction to get you on the path to debt freedom. Reducing credit card debt [http://xsdebtelimination.com/] is the first step to getting out of debt. Find out how you can get out of debt in five years by reducing credit card debt [http://debt-settlement-today.com/how-to-pay-off-credit-card-debt].

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Reducing Credit Card Debt With a Debt Snowball

By David Kimball

If you are interested in reducing credit card debt, know that there are no instant solutions, no matter what the slick salesman says. If you are in a situation where it is causing you fits, remember that you did not get where you are overnight. Nor will the problem go away as quickly. But it will go away. And the best way to do it is with a debt snowball.

The Illusion

Be careful. Do not fall for come-ons telling you that you can lower your payments overnight. Oh yeah, in a lot of cases you can lower your payments almost immediately, but that is only by raising your overall debt.

It is how debt consolidation loans work. And is usually an illusion to really living debt free. The loan provider, many times a third party to a debt counseling service, provides you with a loan that lowers your monthly payments. You may reason that by doing this they are saving you money, when they are actually costing you more. In order to lower your monthly payments they are combining your debt. Maybe you have three credit cards they combine or a couple of credit cards and a car loan. They combine this debt together and give you a consolidation loan that costs less per month than the total of the combined bills. They are able to do this by extending the term of the debt. You pay less per month, but over a longer period of time. Therefore, these types of debt consolidation loans cost more in the long-term in extended payments and interest.

The Real Way

The real way to reduce your credit card debt is to pay it down with what is called a debt snowball. Do not fall for any other credit card debt solutions. If you are only making minimum payments, you will practically never get financially free. Even paying a little more on your credit cards each month will help you in a big way.

It is not a stretch to find $10 a month out there somewhere that you are spending on non-essential items. Take that $10 a month and add it to your payment each month on the card with the smallest minimum. You will be surprised how fast you can pay off a credit card this way with a debt snowball. It will not be overnight, but once done you never have to worry about it again -- unlike a debt consolidation loan.

Now that you have paid off that first credit card, take the monthly payment from it and add it to your next largest card. If your first card was costing you $20 a month minimum, and you added $10 a month to that, you now take that entire $30 a month and apply it to your second credit card. You will probably pay this one off even faster than the first. Now, you are drastically reducing credit card debt with the goal of complete elimination. What a great feeling!

You Have Made That First Step - This is just one step on the way to your goal of living debt free. Spend less than you make and live on a personal budget to round your plan. This simple feat of using a debt snowball is key to permanently reducing credit card debt and, eventually, how to live a financially free life. Take the next step now and make a household budget. David Kimball is an author and speaker providing financial coaching to help you get out of debt in 24 months or less.

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Credit Card Debt Solutions - The Debt Snowball

By James Ashford

The debt snowball is one of the most effective credit card debt solutions, and a very effective way to finally pay off debt. Believe me, you really can do this, no matter how much you owe.

First of all, before you even begin, you need to realize that your debts are not going to disappear overnight. You didn't accumulate them all in a day and you're not going to pay them off in a day either. You also need to accept the fact that if you are going to overcome your credit card debt, you will have to stop using your cards.

Now, you need to figure out how much you can possible spend on your debts each month. Look for ways to minimize your monthly spending on luxuries and non-essential items so you can apply that money to your credit card bills. Be sure to have a small emergency fund that you can fall back on if something comes up, like a car repair or a leaky roof, etc. That way you don't have to put that expense on credit.

Now you are ready to start the debt snowball. Make a list of all of your debts, large and small. Sort the list in order of lowest balance first, down to highest balance last. Hopefully the last item on your list will be your mortgage.

From here you start to put all of your available money toward your smallest debt, while still making the minimum payments on all of the others. Once you pay the smallest one off, take all of the money you were putting on the smallest debt and add it to the monthly payment that you were making on the second smallest one. Continue with this method all the way down your list until all of them are paid.

Some people suggest starting with the highest interest debts first so you can save on interest. This makes sense, but you will have a much greater sense of achievement by eliminating each debt quickly, rather than just saving a couple of dollars on interest. Imagine how good you will feel each time you cross a debt off your list!

Once you experience the exhilaration of paying off those first few debts, you will be hooked! That is what is meant by the debt snowball effect - once you get it started it just keeps rolling and growing under its own momentum. The debt snowball method really is the most effective credit card debt solutions you can use.

There are a few cases that this method may not work for. Perhaps you simply have too much debt to handle on your own. Maybe your income is actually less than your credit card monthly payments. Maybe it is just too overwhelming for you to even attempt. In cases like these, there is still hope for credit card relief. You may need to work with a debt reduction or debt consolidation company. These companies will work with you to find a credit card debt solution for you.

If you need help with your credit card debts, you can get a free consultation from Debt Consolidation Headquarters [http://ELIMINATECREDITCARDDEBTNOW.INFO]. You could be debt-free in 12-36 months, and they may even be able to reduce what you owe by up to 50%.

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Debt Snowball - A Simple Method Of Getting Out Of Debt

By Martin McAllister

More and more people are unfortunately finding themselves sinking deeper into the debt mire. Many people look for outside help to tackle their debt problem, perhaps through the Citizens Advice Bureau, or a firm specialising in negotiating with creditors to lower the monthly payments. Others might take out an IVA (Individual Voluntary Arrangement) or in extreme cases might even consider declaring themselves bankrupt. However, all these solutions will have a major, negative effect on your credit rating.

However, by using a recently introduced system of managing debt repayments, people can actually help themselves to tackle their debt problems without damaging their credit rating. The system, called the Debt Snowball, has been devised by Dave Ramsay and goes against the grain of most of the advice given by self-help books and even some financial advisors.

Many debt counsellors advise paying more money towards the debts carrying the highest interest rates first, with the lower rate debts receiving the minimum payments. However, in many cases the debt that has the highest interest rate also has the highest amount outstanding and it can feel that no matter how much money you plough into clearing the debt, it never seems to get lower. And by paying the minimum amounts to your other debts, you'd be hard pushed to make a dent in them too!

However, according to Dave Ramsay the best method is to create a debt snowball by actually paying off the smallest debt first! The method works by setting aside a fixed amount of money that will allow you to cover all your debts with a little extra left over. Ramsay advises that you pay the minimum payment to everything other than the smallest balance, where you devote whatever cash you have set aside towards the debt. Once that debt is clear, add the payment onto the minimum payment for the next debt and continue the minimum payments for the others. As each debt becomes cleared, the snowball of cash you can pay towards your debts get bigger; and as you get towards the bigger debts, the snowball will allow you to pay more off the debt and clear it off quicker.

The system works, regardless of who you have debt with: banks, building societies, credit card issuers or even debt collection agencies, such as Capquest, and before long you'll see debt being reduced far more than you would if you tackled your bigger balances.

So, if you're struggling with debt, but don't want to go down the debt consolidation or IVA route, a debt snowball might be the answer; and there are many websites available which can provide calculators to help you work out the size of the snowball you'll need to help you get out of debt.

Capquest Debt Recovery is a UK-based company, specialising in the management and recovery of overdue and delinquent consumer and corporate debt.

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How Debt-Snowball Technique Works in Paying Off Credit Card Debt

By Cornie Herring

Credit card debt is serious financial burden to everyone who faces it. The only way to get rid of it is to pay it off. There are many ways or techniques that can be used to get rid of credit card debt and one of them is called debt-snowball technique. Let's explore how the technique works and under what condition, this solution can be applied to resolve debt problem.

Debt-snowball technique involves paying the extra cash toward smallest balance first and works toward the largest debt owned. The technique has gained more recognition recently because it is being used by many financial and wealth experts to help their clients to handle revolving credit, especially in getting rid of credit card debt. Moreover, survey results show that the debt-snowball technique is among the most favorable credit card payment solution as most people have a tendency to want to take care of small, easier-to-handle-of things first.

The basic three steps involved in debt-snowball technique are as follow:

Step 1: List down in ascending order for all debt owned from the smallest to the largest amount. If there are two debts have the same amount, then debt with higher interest rate should be listed on top of the other one, which has lower interest rate.

Step 2: Calculate the amount of money required to pay the minimum of all debts. Determine how much extra cash that can be used to pay toward the smallest balance. Make the minimum payments on the rest of debts and applied the extra cash toward the smallest balance until it is completely erased.

Step 3: Once the smallest debt is paid off in full, do not alter the monthly amount used to pay debts, but apply the payment used to pay the first debt (the minimum payment plus the extra amount) toward the next-lowest balance. Repeat the process until all debts are being cleared.

Psychologically, by using the debt-snowball technique you will see debts go off faster since smaller balances are easier to be paid off under the this technique. This technique works well if the smallest debt has higher interest rate while the larger debts carry lower interest rate. But, if it is the other way round, which the smaller debts carry lower interest rate, while the larger debts have higher interest rate, debtors will need to pay more interest at the end.

This debt-snowball technique is also a preferred solution for people who are less aggressive, but hoping to see their debt being erased fast. Many people, especially those who have tried to pay their high interest rate or largest balances tend to give up after some time because they felt like they were never getting anywhere. On the other hand, the debt-snowball technique provides the psychological lift of pinging debts off in rapid succession by getting rid of the smallest balance first that motivates them to work toward getting their debt settled.

Summary

Debt-snowball technique is a debt payment solution that starts by paying the smallest balance first. You remain the amount used to pay your total balances throughout the process of paying of the balances owned. Any extra cash that you want to use to make payment, always throw it to the smallest balance first.

Visit Cornie Herring at http://www.studykiosk.com/CreditBasics/ to find more debt relief resources on the options available for you to get rid of debt. Learn from Cornie on how to find extra money to pay your credit card debt.

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Using a Debt Snowball to Eliminate Debt

By Lynn Reynolds

Of all the personal debt solutions, the debt snowball method stands out as the one that anyone can relate to and apply to their own lives. You are standing on top of a snowy hill and you make a little snowball. This snowball is what you can pay on your credit card bill each month. It's not much. You might wonder if it is good enough. But don't worry about that. Instead, send it down the hill. As it rolls down, it gains speed and it picks up more snow as it goes. Soon, your little snowball isn't so little. When it gets to the bottom of the hill, you have a large snowball that you can apply to your monthly debts.

The debt snowball method for eliminating debt is perhaps most famous for its recommendation by the financial guide Dave Ramsey. It's accessibility makes it appealing to those who have tried more complicated means of debt elimination but failed.

The first step is to list out all of your debts. There are two different ways you can order your list, each with its own advantages and disadvantages. The first way, and the way recommended by Ramsey, is to list your debts in order from least to greatest. Next to each one, write the minimum payment each month.

For example, you have a Sears card that you owe $50 on, and your minimum payment is $5.00 a month. You also have a Visa with $643 owed and a monthly payment of $52. Finally, you have a Mastercard with a balance of $2,430 and a monthly payment of $100.

To get started, pay the minimum amount monthly on each of your debts. For the first debt, find extra money so that you can pay it off as soon as possible. Eliminate un-necessities in your life, sell some possessions, or get a second job. Instead of five dollars a month, you discover that you can afford to pay twenty-five dollars. Pay that each month and you will have that card paid off in two months time. An important note: do not spend any money on your cards while you are doing the debt snowball. Pay for things in cash or use your debit card, not a charge card.

At the end of the two months, you have an extra monthly twenty-five dollars freed up. Apply that to the next smallest debt. In the sample list, you will now be paying $77 a month on your Visa instead of the $52. Repeat this process until you have eliminated all of your debt. This process might take years, but can be sped up if you find ways to increase your income while decreasing your spending. Any "extra" money can be applied to the snowball.

The other way to list out your debts is to list from the highest interest rate to lowest interest rate. This will save you money and make your debt elimination go faster. Some people who use this method, though, get discouraged because it does take longer to see the results. If you use this method but find yourself wondering if you'll ever pay off your debts, pay a small one of before returning to the high interest loan. When applying the debt snowball, your focus and determination are the most important things. With those you will find yourself paying off your debts no matter how you have them listed.

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Eliminate Debt and Live Life

By Ted Batron

The faster we are able to eliminate our debt, the happier we will be. This seems like a pretty basic concept. But eliminating debt is sometimes easier said than done. Lets go over a few tips for getting rid of or drastically reducing credit card debt to make our lives easier.

When we carry a large number of credit cards, it is just human nature that we use them. When I was in the debt mode, I used to actually think to myself "wow, I have 50 thousand dollars in my pocket". That was a pretty destructive thought process. If you don't incur the debt, your better able to save for the future and have money ready when you need it. Change the thought process, and change the habits.

There are no friends in the credit card companies. Removing your money from your possession is their only goal. If that sounds a little harsh, the truth is that this is war, and for the most part, the companies that offer credit in a predatory fashion, and that includes all of them, are the enemy. And they are winning.

Remember, being a little short because you made a purchase of something that you wanted or needed is one thing. Being short, and having the credit card companies drown you in increasing debt for years to come is much worse.

Mortgages and auto loans are areas where we want the best interest rates. If your consumer debt is too high, both of these areas will be difficult. If our consumer debt is really high, debt elimination programs may be necessary before we even buy things like homes and cars.

If you can avoid debt altogether, you have really dodged a bullet. A convenience card, or an emergency card is fine. I keep it at home in my desk drawer. It is used for emergency car repair, maybe new tires or other items I can't avoid purchasing. If you can afford your emergency expense in cash, then you are still better off. Debt elimination is not quit as easy as just avoiding the debt in the first place.

Destroy your credit cards, except for the one with the lowest interest rate. Begin a repayment plan starting with your highest rate card. If you get an offer to transfer your balance to a new card at a lower interest rate, take it. But keep on paying off the card even if you have to work more or spend less. Whatever you do, don't use the card!

If you have 5 credit cards, make the minimum payment on 4 of them. Make a higher payment on the one with the highest interest rate. When that card is paid off, apply that payment to the next card. Remember, to pay off a card, you must pay higher than the minimum payment.

Some card companies offer zero interest on balance transfers. Be careful, make sure its not a limited time offer. But if you get one of these, take it. Transfer as much as you can to the lower interest rate card, and then just don't use the card! You can eliminate your debt fairly quickly at zero percent interest.

Just think about how much less stressed you will be after you have eliminated your debt.

Ted Batron is a financial expert who specializes in debt counseling and custom debt elimination plans. He has developed a short eCourse that's a great primer for those who are ready for credit card debt relief and want to learn how to negotiate, eliminate and settle credit card debt at a 30-70% discount and become debt free. If you would like to know more about Ted Batrons "5 Debt Settlement Secrets You Should Know" eCourse, visit http://www.No-Debt.net

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How To Easily Eliminate Debt - Winning The Battle

By Leslie L Tepper

We've all had debts at one point in time, but what happens if the debt amounts are becoming huge day by day, the pressure is increasing and you now want out? Many of us are in debt because we operate on a buy now pay latter motto or because the use of credit cards has become a part of us, some of us even have multiple credit cards.

Once you borrow you not only incur the responsibility of paying the principal but also the interest hence increasing your debt due. Its therefore important that you start taking measures to eliminate debt.

If you are looking to eliminate credit card debt, you have already reached 50% of your goal because your decision to eliminate credit card debt is the first and the most important step towards you being able to eliminate credit debt.

It is important to say that you need to be firm on this decision and stick to it, till you finally reach your goal.

There are ways one can achieve easy debt elimination. If you are of the habit of eating out, you should reduce this and start eating in your house. Make a weekly or monthly budget on what you need and stick to the budget and always strive to spend less than you earn. Its advisable that you always pay cash for goods bought rather than using that credit card. Getting help from financial experts is also away of eliminating debt as they help you in controlling your finances.

Start putting away money every month to cater for the existing debts and call your credit card company and ask for low interest you will definitely get it and especially if you pay on time.If the debt is too high you can seek the services of a trustworthy debt negotiator to try and get your debt reduced.

Make a debt management plan and stick to it, call your creditors and let them know of your plan, stop further borrowing and change your lifestyle to only fit your needs, lessen your spending, stick to budgets and save more to cater for the debts when they fall due. If you put more effort and your committed to eliminating debt then maybe you can soon be debt free.

For sure there are many people are finding means of to eliminating credit card debt without paying. Unfortunately with heavy consequences, and they may have a large impact on your life.

Many have found a break in their financial troubles through the help of professional debt reduction companies to legally eliminate credit card debt. Debt help is done with different strategies. Usually it depends on which services you hire and how you handle your financial relationship with these companies.

A settlement service or a negotiation company can take hold of one's unsecure debts and bind them together to deal with them. The company would negotiate with the banks to reduce the due amount of their customer. Eventually banks would be willing to trade with the negotiation companies than individuals.

Hiring an expert debt relief service to make all negotiations in your behalf yields the best results. For sure at the end of the talks, you will feel a sense of financial independence. The debt settlement company will handle all your worries such as the annoying phone calls from the credit card company or even the debt collectors who persistently irritate you.

However, it's imperative to understand that any and all methods to eliminate credit card debt will fail if you don't inculcate controlled spending habits.

by Leslie Tepper

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Professional reliable help in your financial problem, personal, individual advice with Integrity, Honesty, Hard Work. Free Consultation, Free Money Making Opportunity, Free Promotional Tools.

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Debt Elimination Plan - Strategic Steps Towards Eliminating Debt

By Stefan Moynihan

Being that our nation as a whole has suffered an economic turmoil in the past, a debt elimination plan can help Americans tremendously in overcoming overwhelming debt problems. The best way to jump start such a plan is to first construct a goal of spending less than what you earn. This may sound like a straightforward strategy, but at the end of the day, this is the only way to get out of debt. Of course, this is easier said than done, for you to achieve this simple goal, it would need determination, commitment, and some sacrifices in your part.

Be aware that if you spend more than what you make consistently, then the chances of you getting out of debt is close to impossible. You will never free yourself from the bondage of debt and in effect, you may never get to live a life that is financially free. The key to eliminate debt in the earliest possible time is to start living within your means. With conviction and self-discipline to control your spending and stop accumulating more debt, you are well on your way to living a debt free life.

A debt elimination plan should start with the process of identifying what areas of your finances savings can be made and which of your greater debts should be cast off the soonest.

To further demonstrate, here is a concrete list of steps to follow:

1. Create a Budget

Start off with making a list of your income and your past expenditures. With this list, you can easily identify expenses you have made in the past that you can actually live without and expenses that can be considered quite extravagant or frivolous. It also gives you the opportunity to see which areas you can easily make small savings from.

After thoroughly examining your past spending habits, you can now make a revised budget wherein you cut all unnecessary expenses and channel the money you make in a month towards spending only for necessities and paying off a bulk of your debts. Make sure that you make an honest assessment of what you consider as necessities and luxuries in order to maximize the results of your revised budget plan.

This revised budget will be to no avail if you do not stick to it as meticulously as possible. Even a slight diversion from the budget can create a knock-on affect that can send you spiraling back to a debt dependent lifestyle.

2. Try to minimize the number of unsolicited credit card offers you receive in a given time

Doing so will not in any way affect your credit rating, but if you are able to successfully reduce the amount of credit card offers given to you, you also reduce the amount of temptation of acquiring more accessible credit which will definitely help in your goal of eventually eliminating debt.

3. Stop using your credit cards for more purchases

Best way to do this is to incinerate the plastic - simply cut it in half. If you find it difficult to do this, then leave it at home and practice not carrying it around with you at all times. This will certainly help you put a halt in spending more than what you have and helps you maintain a tighter control on your expenditures.

Remember that using your credit card and paying only the minimum required payment each month - or worst yet, forgetting to pay your monthly dues - is what has led you to debt problems in the first place. Not using your card at all helps you stay away from accumulating more debt in the future.

4. Go to your creditors and negotiate the interest rates of your credit cards.

The more affordable your monthly debt payments are, the easier it would be for you to pay it off. The best way to make your monthly debt payments more affordable is to acquire lower interest rates. The only way to get lower interest rates is to ask for one. Not all creditors will oblige to your request, there are creditors, however, who will willingly help you out in easing the burden of your debt situation. They give considerations especially to clients who have been consistent in debt payments and those who have had an account with them for quite some time. So asking for more favorable debt terms will do no harm.

5. Try to consolidate credit card debt with higher interest rates to credit card accounts with lower interest.

This will prove as a very viable solution especially for those with a number of credit cards to their names and with very high account balances. Doing so will considerably reduce the amount of monthly debt payments since many creditors offer a promotional low to zero interest rates if you consolidate your other credit card account balances with them.

5. Prioritize paying off credit card debt that has the highest interest rates.

Try to pay off debt that has the highest interest rates quickly and gradually work your way down to debts that have lower interests. It is highly advisable that you immediately close the credit card account once you have completely paid it off in order to eliminate the temptation of using it again.

Make sure that you pay more than the minimum required each month on the debts with the highest interest rates in order to pay it off sooner. Once those are paid off, start paying more than the minimum to the debts with the smaller interest rates and before you know it, debt will no longer pose as a hindrance to your financial freedom. If you insist in paying just the minimum required amount each month, then know that you are not even making a dent in your overall debt level and it would be impossible for you to get out of debt soon.

6. Save for emergencies

It is common practice to use credit cards in case of emergencies even for those who are dedicated in cutting down the use of the plastic. It would be wiser however if you have an amount set aside for a rainy day without having to succumb to swiping your card. Try to set aside at least $50 to $100 a month for emergency purposes. This may not seem as a big amount, but gradually this amount will build up and you can be assured that it will cover any emergencies arising in the future without the need to accumulate more debt.

In conclusion, in order to be successful with a debt elimination plan, it is required that you have a strong will and determination to follow through. It may even mean that you have to have a significant change in lifestyle for the time being but the end goal of being debt free is certainly worth the effort and sacrifices. Successfully eliminating debt is the only way to ensure a brighter and more enjoyable financial future.

To learn more about other ways on how to reduce and eventually eliminate debt, please visit this link: [http://debteliminationplan.info/]

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