How to Eliminate Credit Card Problems
- 1). Stop constantly using credit cards, especially if you already owe thousands of dollars on your credit cards. Continuing to add to the problem only digs a bigger hole.
- 2). Set up a personal budget. A credit card budget allows for comfortable living, because it separates the money you want to spend from the money you can spend. Setting up a budget for groceries, entertainment, clothes, and so forth allows you to keep your credit card spending under control. Set the budget to only what you can afford to pay.
- 3). Use cash instead. Credit card problems often arise from buying impulsively. Instead of paying with a credit card for most purchases, pay with cash. People often associate credit cards with little value, but a $20 bill holds value. Signing a receipt to conclude your purchase can feel like nothing, but giving away a $50 dollar bill can feel far more intense.
- 4). Get a better rate. Apply for a credit card that has low interest or 0 percent APR balance transfers. Transferring your debt to a low-interest card allows you to pay it off quicker. These rates typically last for six months to one year.
- 5). Pay off the highest interest rate first. Put all of your extra money to paying off the highest-interest debt, and then work your way down from there. This keeps debt with high interest rates from growing out of control.
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