My suggestion way to reduce credit card debt

This article will suggest some way to reduce your debt. I think these ways can help you as much as possible. Check it!

Reduce Expenditures
Many people may not cut down their expenditure. Do you accept lower standard of living to reduce your debt? It’s questionable that your ‘need’ is really ‘want’ so you can cut it and still alive. Can you find item which to be reduced in expense? Some shopping like new bag, or new shoes don’t necessary for your life. Simple category of ‘want’ – not ‘need’ expenditure are Entertainment, travel, clothes, gifts, new car, and home improvement.

Pay Off Credit Card Debt
Eliminating credit card debt the way to pay off is finding an investment that earn equal or higher than interest rate of credit card debt. For example, if interest rate of credit card is 18%, you have to find investment that return at least 18%. I always use this approach in case of investment yield higher than interest rate of debt and I must have money too. In other word, if I have money, I will have select pay off debt or investment. Beware that It’s not make sense if you invest at 8% and still pay debt at 18%, in this case I pay off my debt first.

If you’re able to pay off your credit card debt in lump sum, you should pay off as much as you can for reduce you monthly fees. The faster you pay off the debt, the lower your overall cost.

Consolidate or Balance Transfer Debt
If you can’t eliminate your credit card debt in the same time, you might consolidate your debts or get into the process of balance transfer. These ways doesn’t reduce your debt immediately but they can make cheaper in interest charged.

Some guide to you is following:
Find a lower interest rate credit card. Apply for new lower and use your new credit card to pay the old one. In this way, your debt is now having lower interest rate. You can find credit card offer in bankrate.com.

The other way is use home equity Loans. Home equity loans have two main benefits. The first is it’s often lower interest rate and the second is tax benefits, this is tax-deductible loan. But you must carefully use this way because home equity loan is long-term debt and you may lost your house if you can’t pay for it.

I want to advice you to get help from a nonprofit agency. They also give you suggestion of how consolidate loan, review your debt problem and help you to find lower rate debt.

Change Credit Cards to Debit Cards
Credit cards often lead you overspending; because you think it’s not your money. You should change it to your money - debit cards. I believe that you surely tend to more careful spending if you use debit card. Debit card is similar to ATM card but it does better because you can use debit card at a supermarket, department store, and many retailers.
You can’t spend if you don’t have any money in your balance. So debit card can prevent you for overspending. But some time your own bank may not offer you a debit card. In this case you have to change your bank account.

Use your own Savings to Pay your Debt
If you have your saving and want to get out of credit card debt, use it for eliminate credit card debt. The disadvantage of this way is opportunity to use your saving for investment will lower. You have to make the best decision for manage your credit card debt.

Borrow from Your Family
The last you have to consider to borrow with your family or your friend. Don’t laugh at me. This is true if you are unable to pay your debt. Borrowing from your family doesn’t mean that you borrow interest-free. Sometimes you can offer them an interest but lower than your original debt. And then you can cut cost of interest expense up to your relation.