| Debt Relief Action Plan: How to Power Down Your Credit Card Debt |
Minimum payments are designed to keep you in debt for as long as possible and will therefore make the lender a massive amount of profit in relation to the amount borrowed, this is commonly referred to as a 'debt trap'.
Your action plan involves getting out of this perpetual cycle of interest payments reducing both the amount of time you are in credit card debt and the amount of money you pay the card provider. This could amount to thousands in saved interest payments.
This action plan can be for all your consumer debt as well as your credit card debt; this includes such things like store cards, doctors bills, auto loans etc
Step 1. Make a list of all your credit debt.
This list should contain the following:
Type of credit card/ debt
Outstanding Balance
Regular payment amount
Minimum Payment Amount
Interest Rate
Remaining number of payments
Estimated pay off date
Once you have compiled this list put them in order of number of remaining payments and list them from the least at the top to the most at the bottom.
If the debt at the top of the list has a minimum payment of $50 and there are 6 months of remaining payments left on that debt, once paid off that $50 can then be used to add to the minimum payment of the next debt, and when the second debt is paid off you can then add the $50 plus whatever the minimum payment on the second debt was to the third and so on.
This simple way of powering down your debt can reduce a thirty year repayment to a nine year repayment.
Now, if you can find ways of freeing up cash to put towards your minimum payments you can reduce the 9 years even further. Learn methods of living cheaply, reduce your utility bills by being more energy conscious, walk instead of driving, take a flask of coffee to work instead of spending $100 a month at 'starbucks'.
You will be amazed how much money you actually flitter away each month, money that could be used for clearing your debt. Imagine if you could double your minimum payments, your debt could be repaid in 3 to 5 years!
For more about debt consolidation and methods of debt elimination visit http://www.creditcardconsolidationloanssite.com
Article Source: UnArchived Articles
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