How to Pay Down Credit Card Debt

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Take a look at your billing statements. Tally up all the balances from your credit cards and figure out the total amoiunt. 

Don’t add anymore debt to your credit card. Avoid using your credit card to make small everyday purchases. Doing that is just going to keep piling up more debt and you’re just digging yourself into a deeper hole. Instead of using credit cards, try paying in cash or use a debit card. For people who have Bank of America debit cards, try to enroll in the Keep the Change program where you purchase an item using your Bank of America check card and they round up the purchase to the nearest dollar amount and transfer the difference from your checking account into your savings account.

Spend less. Avoid making any impulse purchases on fast food, Starbucks coffee, and etc. Instead of eating out, try packing lunch. The cost of buying fast food is around $4.00.

Always pay more than the minimum balance. The credit card company wants you to pay the minimum balance. If you only pay the minimum, then it will takes years to pay off the balance including the interest.

Consult with the credit card company. Try to negotiate with them about lowering the interest rate or the annual percentage rate (APR)

Try Dave Ramsey’s snowball debt method. Try to pay off the lowest balance first and then continue on to the next balance until they’re paid off.

Create a balance sheet that lists your assets and liabilities that will show your net worth or where you are financially. Try to create a spreadsheet that shows the balance, interest rate, and minimum balance. Doing this can help you keep a track on your credit card debt.

Add more money or extra income. There are so many ways to make money and use it to pay off credit card debt. Try selling your stuff on Ebay. Use online sites like eHow and Bukisa to write articles. Have a second job, a weekend job, seasonal job, or freelance work.

Have an emergency fund. Have a high yield savings account. Use it as an emergency fund. Have at least $1000 in your emergency fund. You can ask your bank to have an automatic transfer from your checking account to your savings account. 

Save your loose change. Put your spare change in a jar or in a piggy bank until it is full. Separate the coins into pennies, dimes, nickels, and quarters and put them in coin wrappers. Deposit them into your savings account and use that towards your debt. 

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