Underground Journal

Eliminate Your Credit Card Debt Now!

I have never met someone that planned on getting into debt.  Unfortunately, it is something that happens to the best of us.  If you are looking to eliminate credit debt here are some simple strategies that you can employ.

Develop an Emergency Fund

Before you start tackling your debt, developing an emergency fund is a good idea.  Otherwise, you will be tempted to turn to your credit cards the first time that something does not go as expected.  A good rule of thumb is to have an emergency fund equal to three months of your living expenses.

Consider a Consolidation Loan

While you certainly do not want to get into additional debt, a consolidation loan can be a good idea.  A consolidation loan can be as simple as getting a single credit card at a lower interest rate to transfer all of your balances to.  Be very careful about using your home as collateral when getting a loan.  While many experts recommend this tatic, most research shows that people who do this just end up right back in debt.  And, if things go wrong the last thing that you want to happen is that you lose your home due to credit card debt!

Don’t Underestimate the Value of Small Savings

I am sure you have heard of the “latte factor”.  While you may personally resist the notion of giving up your daily coffee fix, the reality is that looking for small ways to cut your expenses is one of the best debt free solutions that you will find.  Try packing your lunch or carpooling.  You can even make small changes at home that will save on your energy bills.  While none of these changes alone is enough to make a huge impact, before you know it you can be saving a few hundred dollars a month that can go towards debt reduction.

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