One of the main reasons why a majority of people living in America cannot accumulate wealth is because of their mounting credit card debts. The excessive use of plastic money in the last few decades makes it easy for such individuals to purchase what they need in the current moment and pay for them at a later stage. In some cases, they find it very difficult to control their impulses. Rather than accepting responsibility for the financial situation they are presently in, they start blaming the economy for their plight. However, prominent financial experts say it is possible for them to overcome their credit card debts and start saving money.
Danny Crenshaw – Ways For Reducing Credit Cards Debts Within a Short Period
Danny Crenshaw, a law student from Washington, says it is possible for people from all walks of life to reduce their credit card debts to manageable levels. They just need to keep in mind the following 8 simple tips:
- Assessing the present situation
He points out that people first need to be aware of what their present financial situation is before they take necessary steps to reduce their credit card debts. They may assume their liabilities are a certain amount only to find the figure is much higher. This is the reason why they need to take time off from their hectic schedule to sit down a write up a list of cards they carry, their corresponding outstanding amounts and interest rates. This will tell them where they stand and help avoid incurring penalties.
- Negotiate with lenders for lowering the interest rates
Danny Crenshaw further explains that people accumulating huge credit card debts should take steps to enter into negotiations with their lenders for a cut in the interest rates. It may come as surprise to such individuals what a phone call and simple request can do as a long as they have a good credit history. However, such a step can help them save lot of money when it comes to paying off such financial liabilities.
- Formulate a budget
Individuals with huge credit cards debts should then formulate a budget to curtail unnecessary expenditure. In many cases, it may come as shock for such people to know they may be earning a good income but they are spending beyond their means whenever they use plastic money. This can help them to make the necessary sacrifices when it come to reducing such extravagant expenses.
- Choose a suitable repayment strategy for such debt
The next step is for such people to come up with suitable strategy to pay off such credit card debts. Mot prominent financial experts say should start by repaying the cards with attract the highest interest rates while paying the minimum amount on the others. Once they are a successful in clearing such liabilities they should choose the cards which have the second highest interest rates and so on.
The above 4 ways can help people reduce their credit cards debts significantly within a short period. However, Danny Crenshaw clarifies that they need to monitor their progress to achieve the financial security they desire. Even could even consider using cash to pay for expenses rather than their credit cards where it is possible. This step can help them save a considerable amount in the long-run.