Reduce Debt How To's – Credit Card Debt Weight Loss

Reduce debt is the new focus now that the family has left, table cleared and the leftovers are now a memory. The bloated feeling around the waist is gone and the debt sitting on credit card statements has not yet arrived.

In general life is returning to normal. The new normal will so show up in your mailbox as unpaid credit card balances and knowing you need to reduce debt. The new normal is the growing debt on credit cards! A new weight loss of debt reduction needs to start.

So let me ask you… do you think it only happens to you? Rest assured that holiday expenses hits even the most frugal and tight fisted among us. Depression can sneak up on you when debt reality hits of how much debt was placed on the small plastic credit card.

Trying to justify the spending and going into debt may make you feel good but sooner or later you must get real with debt reduction - eliminating the unpaid balances and working a plan to not allow debt to rule your life again.

Don’t wait until the New Year to put things into action – start today. If you take action now the debt you currently face will be just like the holiday meal – only a memory.

Simple Steps to Reducing Debt

Get Real With The Bills – Don’t Ignore Billing Statements

Out of sight out of mind just doesn’t cut it or lower the debt on a credit card balance. In fact ignoring the bill only makes things worse. Every month you put off making a payment – even the minimum - the late charges continue to grow. Creditors report late payments to credit bureaus and that ongoing debt finds it's way to your credit report lowering your score.

Stop The Bleeding – Don’t Keep Buying and Adding Debt

After reading your credit card statement you may feel a little depressed and in need to a little pick me up. Don’t use your credit card as therapy! Buying something to sooth the down feeling only drives you deeper into debt. Put the credit cards away. Better yet - leave them at home. Make using them difficult.

Consolidate the Debt – Combine Balances

Making payments on a bunch of different credit cards can make the steps of reducing debt drag on for a longer period of time. With multiple payments on several cards the balance moves ever so slowly. Consider shopping around for a lower interest credit card or a zero balance transfer to consolidate all your credit card balances to one card. The lower interest will save on the monthly finance charges and allow you to focus on reduction of one bill.

Get Focused – More Than the Minimum

The simple truth is… credit card companies would be more than happy if you only paid the minimum. This way you will pay for years.

Always pay more than the monthly minimum payment. Any extra money you can find - add it to your payment to reduce the balance down as fast as possible. Every dollar you pay down reduces the debt and the extra interest charged on the unpaid balance.

Look at the interest charged every month and how much that extra money could be in your pocket instead of a debt.

Handling Multiple Cards And Balances

If consolidation of the debt onto one credit card is not possible and a debt consolidation loan is not an option it’s time to snowball your debt. Snowballing combines getting focused and paying the minimum.

Confused? Don’t be!

When reducing debt with a “snowball effect” you take one credit card – I recommend the one with the lowest balance. Then put all your efforts into paying off that one card. Pay the minimum on all the other cards.

Once the first charge card is paid off take whatever you were paying on the first card and apply that to the next. If you follow through you’ll soon have the cards paid off.

Don’t Be Shy – Return Unused Items

Unplanned purchases often show up as unneeded or unused purchases. They usually hang in the closet with the price tags still on them. Take the step and return them. If the return or refund results in cash pay down the credit card balance.

Monitor Your Progress As You Reduce Debt

Success breeds success plus it’s a great motivator. Before you start paying anything off write down the current balance on paper or use a spreadsheet. I physically wrote mine down – it carried much more impact. Each time you make a payment write down the new balance and enjoy the powerful feeling you’ll get as you draw a line through the old balance.

Don’t stop until all debt on the credit cards is paid off and you have a reduced it all to a ZERO balance.

Getting into debt can happen quickly – getting out of debt and reducing debt usually takes a bit of time. However by following the above steps you can say goodbye to the stress debt brings to your daily life.