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Elimination
Credit Card Debt
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Be Aware
You must always be aware of all fees that may be associated
with your credit card. Know the annual fees, current interest
rates, finance charges, cash advance fees, and any other fees
associated with your card. By knowing this information you can
make better decisions on how to manage your card.
Cash Advances
You should only get cash advances when it is absolutely necessary.
Higher interest rates usually apply when you take out a cash
advance. This would mean that you would be paying more interest
than on a normal purchase. It is better to purchase with a credit
card than to get a cash advance and pay by cash.
Interest Rates
You should always be on the look out for cards that offer lower
interest rates. Lower interest means you save more on finance
charges. Low introductory rates can also be very helpful in
your quest to become credit card debt free. You should look
for credit cards that offer a low intro rate (usually for 6
months), and transfer the balance from your previous credit
card to that credit card. This could save you a lot of money
in interest. Make sure that the new card offer the same or lower
interest rate after the introductory rate has expired.
Minimum Payments
One of the most common mistakes people make is that they only
pay the minimum required payment. You will save a lot of money
on interest and get to your goal faster if you pay more than
what is required. |
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