Do you want to know how to go about reducing debt? Well, we all do. Reducing debt is the key to gaining financial freedom and building wealth. And without debt, no matter how much we make, we can all build our way to financial freedom.
Credit card debts are the main source of debts that trouble Americans. There are a number of ways to go about reducing debts. Here are three simple ways:
- Pay double the minimum payment
- Set up automatic payments with your bank
- Pay more frequently than once per month
Pay double the minimum payment
When you're really struggling with credit card debts, this sounds painful. But it's key to reducing debts. By paying double the minimum payment, you will reduce (in the long run) the interest you pay and you will have less cash available to yourself (that's the hard part!) so you will be likely to spend less. This all adds up to you spending less money and reducing debts.
Set up automatic payments with your bank
This is a great method for reducing your debt because once it's set up, you don't even have to do anything. Set it up with your bank - you can usually do this online - so that a certain amount is sent to pay your credit card debts immediately after you are paid. This gets you in the habit of reducing debt.
Pay more frequently than once per month
This is rarely talked about, but it is an effective strategy. If you pay $100 on a credit card each month, pay $50 of it in the middle of the month and the other $50 at the end of the month. This will help you to reduce the interest that accrues on the account (because the average balance on the card will be lower for half of a month. In the long run, this adds up and help you in reducing debt and eliminating your credit card debts.
Credit card debts don't have to control your life. You should control your credit cards. These three tips will help you with reducing debt. If you want to eliminate all of your credit card debts, you need more than just those three tips. You need to stay on top of your finances, set a budget, and have a plan. Find a program that you can follow and learn as much as you can about finances.
Michael M Thomas paid off over $50,000 in credit card debt. You can learn how Mike did it by reading his blog . Mike's Credit Card Debt website also provides a free newsletter which regularly provides money saving tips. You can learn more about it and sign up for the newsletter here .
If you are serious about getting out of debt, you should consider a product like Debt Free in Three. Mike talks about Debt Free in Three on his blog .