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Lower High Credit Card Balance
How can you do this? Here are a few suggestions to bring these balances down. What you need to remember is that its not the fact you have a credit card that hurts you. It is that the balance is close to the limit. So here are a few tips to help: - Start a program to pay down these balances - Pay the lowest balance cards first - Obtain another card and transfer some of the balance Start a program to pay down the credit card balance The first thing you will need to do is make a list of all your credit cards. In this list, include the minimum payment amount and the total amount owed. Arrange this list by the lowest amount owed first and then the next lowest second and so on. Total up how much you are paying in minimum payments and finance charges. Also list what their interest rates are for each one. The next very important step in this program is to STOP CHARGING. You cannot get ahead if you continue to use those credit cards. Take a look at this list and mark which ones are closest to the limits. Now you are ready to begin. Start by choosing the card with the lowest balance and pay the minimum plus the finance charge plus an additional amount. Whatever the additional amount is, $10, $20, $30, etc. Skip eating out one night to come up with the extra you need for the month. Keep up your minimum payments on all your other credit cards. Now here is the key to freedom. As soon as you pay one credit card off, add the amount you had been paying each month (the minimum plus the finance charge plus the extra) toward the next card. You are compounding your efforts and soon will have financial freedom. Why start with paying the lowest balance first? The reason I suggest the lowest is the impact it has on your frame of mind. The large one will take a while to pay off and you could get discouraged. So by paying off the one with the lowest balance you will feel such a victory that it will motivate you to continue on your program. You will also obtain the discipline to work on the high balances. This is not a quick fix. It will take time and discipline. If you don't have the discipline to follow your plan, then you may need to seek help. Obtain a low interest credit card and transfer some of the high balance to it. Lenders many times object to charge cards that are more than 50% away from reaching the limits. If you can afford another payment, apply for a low interest card. Then transfer the some of the money from your high balance to this new account. But, do not transfer too much. You only need to transfer enough to get the high account below 50%. Then start the program listed above to get them paid off as quickly as possible. Lowering your credit card balance is one step toward financial freedom. These type of accounts can be useful and have their place when they are used responsibly. The charge companies count on you not having the discipline so they can make a huge profit. Prove them wrong and take you life back by following your plan! Article Directory: http://www.articledashboard.com Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more about any other credit repair tips and other helpful information on their website, First-Time-Home-Buyer-Solutions.com. |
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