What Does Your Credit Card Debt Look Like?
Credit card debt is one of the top financial concerns of consumers today. Credit card debt in America today is at an all time high; so you are not alone if you are carrying a large credit card balance. The American economy is in a slump and unemployment is at all time high so money is tight; Americans feel as if they are backed against a wall.
In these tough economic times, your credit cards are easy to use; you buy now and pay later. The problem with that is the tendency to overspend. If you find yourself in that situation where you have personally overspent you may have accumulated too much debt.
If you are worried about debt and you want to pay it down, you can do it if you follow a few simple steps. Paying down your credit card debt is all positive. You will save money and improve your credit score by paying down your credit card debt. It is such a relief to be debt free; let’s see how you can do it.
Improve Credit Card Debt | Improve Credit Score
Debt is bad; too much debt lowers your credit score. Debt accumulation can become an unending nightmare. Your debt creates havoc with your credit scores; you cannot improve your credit scores because you cannot pay down your debt. Here’s what you do:
1st – Add It Up
To clean up your debt you need to understand how much you are paying in interest. Read the fine print on your credit card contracts; what does the fine print tell you about the interest rates you are paying on your credit card balances.
2nd – Stop The Bleeding
The only way to stop debt accumulation is to stop accumulating. Stop using your credit cards. Shred them, freeze them, burn them…just do whatever you need to in order to stop using your credit cards.
3rd – Keep Paying
The four rules to improve credit scores are: never miss a payment, never make a late payments, at least pay the minimum balance due, never max out your credit card limits.
4th – Pay It Off In Order
The order that you pay off your debt makes a difference. You should first pay off that debt which is charging the highest interest; then go after the largest credit card balance and finally attack the credit card debt that you can pay off the quickest.