Clear Credit Card Debt

Nobody wants credit card debt. Yet we all overspend on our credit cards either through necessity (living expenses rising faster than income) or lack of self control (need to buy “must haves”).

However, if not managed properly credit card debt can spiral out of control causing financial misery.

The good news is that there are ways to clear credit card debt.

The first thing to do is to draw up a list of monthly outgoings to see where reductions can be made. Then by taking disposable income, if any, and cutting down on areas such as food, clothing, holidays, entertainment, use of electricity, gas etc make a disciplined and concerted effort to get out of debt.

To further assist you in your effort to get out of credit card debt look out for:

1. 0% APR credit cards deals (many credit card companies offer you up to one year or more interest free credit).
2. Stop spending on your credit card
3. Pay more than the minimum amount each month. If you are on a 0% APR deal then the amount you pay off reduces your capital only, so the debt will be paid off much faster.
4. If you have savings, use as much of it as you can to reduce your credit card debt. Savings Accounts typically at present pay around 5% per annum whereas the average credit card is around 15% per annum. If you have a 0% APR credit card deal then use the interest earned and as much of your savings as you can, when the last payment falls due under the 0% APR deal, to reduce your credit card debt.

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