By K. D. Nelson, Professional Accountant and Author of the book "Laws of Managing Credit Card Debt".
In October, consumers spent $9.2 billion using their credit cards increasing the amount of outstanding credit card debt to $1.037 trillion, based on the December 2018 Federal Reserve Consumer Credit Report. And, 38 percent of credit card users say they carry a monthly balance, according to the 2018 Consumer Financial Literacy Survey, by the National Foundation for Credit Counseling.
How can I payoff my credit card debt?
Here are 3 financial advice tips that provide a solution to help you get out of credit card debt:
1. Seek Financial Guidance.
Having credit card debt can create a long-term financial problem. You should educate yourself to learn how you can improve your financial well-being. And seek financial guidance to payoff your debt without filing for bankruptcy or getting a debt consolidation loan. Do you agree that you would be in better shape financially, if you had financial guidance that showed you how to payoff credit card debt?
2. Follow a Proven Plan.
Follow a proven plan that can help you get out of credit card debt and allow you to continue to use your credit cards. Having a plan to payoff your debt can prevent you from getting deeper into debt and accumulating a lifelong financial burden. You should maintain a budget of your monthly expenses and keep a record of the amount of debt you owe to determine your financial needs.
3. Use a Debt Reduction Strategy.
A credit counseling agency will setup a payment plan with your creditors and charge you a monthly fee of $35.00 to $50.00 for a period of three to five years. And filing for bankruptcy or getting a debt consolidation loan is not the best way to accomplish your financial goals. Using a debt reduction strategy provides a better solution to help you get out of credit card debt and save a significant amount of time and money.
What is a debt reduction strategy?
A debt reduction strategy is a method that you can use to payoff your credit card debt. You can reduce the amount of interest charges that you are paying on your debt and the amount of time spent carrying a credit card balance.
Source: Laws of Managing Credit Card Debt
How can I payoff my debt without making a financial mistake?
The financial mistakes to avoid when paying off credit card debt are:
- Filing for bankruptcy under chapter 7
- Getting a personal loan to consolidate your debt
- Negotiating a repayment plan with a credit counselor
To maintain a better financial future it is essential that you learn how to manage credit card debt.
The book Laws of Managing Credit Card Debt provides basic financial guidance with proven strategies to help you get out of debt.