Tuesday, March 14, 2017

2 Steps To Pay Down Credit Card Debt FAST

Credit card debt is an ugly beast that can be quite difficult to deal with especially when the average interest rate for people with good credit is a whopping 21%! Now I understand that things happen and every now and then you make a late payment or fall a month behind. So long as you make good on that the following month it should be a non-issue and have little relevance overall, but if you let those balances accumulate for a few extra months you'll be drowning in debt quicker than you can say annual percentage rate.
I don't want you or anyone else out there to fall into this vicious cycle but it does happen and if its happened to you then I'm going to give you two quick ways to climb out of that debt and get back on solid ground.
#1 Stop The Bleeding
Yeah, alright that sounds great in theory but what exactly does "stop the bleeding" mean? Look at like you've just been admitted to the hospital with a serious injury the first thing they'll want to do is stop that bleeding. In our situation though, it means use the credit card companies own marketing techniques against them. What's a well known strategy for attracting new card users? Offering them 0% interest for a specified period of time. So objective number one is to find one of these cards, open them and then transfer the balance to this new card offering 0% interest. This is so crucial and an idea that very few people consider when they're drowning in credit card debt. Most people in this situation hate the idea of credit cards so the last thing they're thinking is to open more of them. However, this is exactly what they should do and once they've done so it leads us into step number two.
#2 Go Into Overdrive During the 0% Period
So you established your new credit card and transferred the balance over but now comes the hard part, paying it down in the allotted time for the 0% interest. This is when your self discipline and ability to say no will need to prevail. Do an assessment on your current spending habits and decide where you can make adjustments that will free up more money for you to spend down on your debt. Forcing yourself to live slightly more frugally than you're used to during this time will be expected but keep in mind this is only temporary. This time of living on less than what you're used to should also serve as a good reminder of why you'll never let yourself get into this situation again.

I'd be more than happy to send you a spreadsheet I designed to help keep track of all your spending and cash flows. This spreadsheet will act as a tool for you to utilize and enhance your chances for success. It will also aid in preventing you from falling back into this awful situation again in the future. You can email me at Mcirelli@saifinancial.com

I'm giving my blog readers exclusive access to my 5 Point Financial Plan completely FREE. The concepts in this plan are one's that I utilize in every new client meeting and set the foundation for proper financial planning. It's loaded with value and not something you'll want to pass up on. Click below to get  your own PDF version!

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