==== ==== This article talks about how to eliminate credit card debt. http://www.whatisdebtelimination.com/how-can-i-eliminate-credit-card-debt/ ==== ====
Settling credit debt will help decrease the amount of money you owe to your creditors, but there are bad effects. First of all, creditors will not even considering settling debt if you've been making your payments on time every month. You have to have defaulted on your loan for a couple months first so that they have a reasons to settle. If you're paying every month, why should you bother? The problem with this is that defaulting on your credit cards will damage your credit. Settling on debt will probably do the same. If you don't want to hurt your credit, you need to find another way to get it paid off. If you already settled debt, you also need to find a way to get it paid. Start by setting up a budget. A budget will limit the amount of spending you do and show you where you are overspending. The main objective you should have is to put every extra penny you have toward the debt. Some people think they can't afford it while they throw tons of money away on things they don't need. Stop paying for cable, Netflix, movie theater tickets, eating out, fast food, electronics, books, music, clothes, trips, coffee, snacks, etc. If you don't need it to survive, you don't need. Until your debt is paid off, that is where it should go. Getting a second job will help you pay off the debt even faster. The more money you have that isn't going toward normal bills, the faster the debt will disappear. Don't look at budgeting as a punishment. You should always have a budget, debt or not. The only difference here is that the budget is telling you to spend a lot less. If you are able to pay for everything, have an emergency fund set aside, and are contributing toward a retirement fund, you can start to budget more money toward things you enjoy. When you are paying off multiple loans or credit cards, always pay off the highest loans first. Pay the minimum balance on everything and put all the extra money you have toward the card or loan with the highest interest rate. This is the most efficient way to get it paid off fast because you will save a lot of money in interest. What would normally take years to pay off you can pay off in a few months (depending on the amount of debt and your income) if you work hard. For extreme cases, you may even decide to move in with a family member or friend until it's paid off to save often over a thousand dollars on rent.
If you are serious about your finances and you want to eliminate credit card debt fast, you need to set up a strict budget and plan to get it done. Eliminate debt and crunch the numbers to determine what day you will be debt free. Use that day as inspiration when you want to spend money on
things you don't need.
Article Source: http://EzineArticles.com/?expert=Angela_M._Warnerton
==== ==== This article talks about how to eliminate credit card debt. http://www.whatisdebtelimination.com/how-can-i-eliminate-credit-card-debt/ ==== ====