Do you know that Credit Card Debt reduces your options in terms of housing, vehicle purchases, and other items. The first step towards true financial freedom is to pay down your credit card debt. Here are four strategies to help you get free of this financial burden:
1. Improve Your Credit Score
Improved credit although do not eliminate your debt but gives you an option of lower interest rate on loans and credit, you will pay lower finance charges on credit card balances and loans
2. Negotiate for Lower Interest Rates
Many credit card companies do agree to minimise additional cost of interest added to your debt. You also have the option to move your balance to a new credit card with a lower interest rate. This can cut off extra cost on your debt.
3. Pay Off High Interest Rates and Low Balances
The best is to tackle and pay off high interest rates as it adds much more amount of debt you owe. Paying off debt with low balances can have positive psychological effects and will motivate you to pay off the next debt and the next until you are debt free.
4. Paying off debt with debt settlement
You can look for this option if you can afford to make one time settlement payments to your creditors. There are debt settlement companies that help individuals to pay off their debts with their debt relief program.