Download - Ways to Reduce Credit Card Debt
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Ways To Reduce Credit Card Debt
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Stop the vicious cycle
Eliminate access to the credit Cut the cards Close the accounts
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Budget and Track spending
Track your spending habits Monitor your budget Review and revise accordingly
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Rainy-Day Fund
Also called emergency fund Save at least $1000.00 as a start-up
emergency fund A fully funded emergency fund is 3-6
months worth of your household expenses
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Action Plan
Plan before you spend Figure out which purchase are priority
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Negotiate the Interest Rate
Contact your lender Most companies are willing to review your
accounts Inquire if they have financial hardship
programs which usually involve modifying your interest rates.
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Accountability
Follow the budget Modify as your life circumstances change Involve family or friends or a support
group to keep you accountable
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Get out of Debt Strategy
Behavior problems requires a behaviorial solution.
Arrange your debts smallest to largest Disregard interest payments Make only minimum payments and any
leftover money goes to the smallest debt. Continue the same process until all debts
are paid
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Action Steps
1. Create a budget
2. Setup an emergency fund
3. Start the debt-snow ball
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