Drug testing

The Simple $10 Debt Elimination Solution

Ask a friend what resolutions they made for 2004 and your bound to hear them reply "Pay off my credit cards." Ask them how they planned on reaching that goal and many of them will not have a clear cut answer.

The obvious first step to paying off credit card debt or paying down credit debt load is to cut back or eliminate the use of your credit cards. For some people this first step can often be the most difficult. If you're used to spending freely with plastic and worrying about the consequences later, it's difficult to break free from this "buy now, pay later" attitude.

To gain control of their careless credit card spending habits, some people cut up their credit cards therefore making it impossible to use them. Others lock up their credit cards or hide them in a safe place and vow to use them only in an emergency.

The second step to paying down credit debt is to pay more than the minimum balance due. Most credit card companies require a minimum monthly payment of 2.5% of the outstanding balance. For example, if you have an outstanding balance of $1100.00 on a credit card charging an Annual Percentage Rate (APR) of 18.9% your minimum monthly payment would be $27.50. It will take you 66 months or 5.5 years to pay off your balance of $1100.00 making the minimum payments. The credit card company will make $676.94 in interest from your use of their credit card.

Monthly payments are purposely kept low by the credit card companies so that they can earn as much as possible from the interest rate charged to you the consumer. Paying just the minimum payment will keep you tangled in credit's web for years and years to come.

If you've been paying only the minimum due month after month, ask yourself this question, "Do I have an extra $10.00 I could apply to this month's payment?" I'm sure that most of us could find some way to come up with an extra $10.00 for the month. Try cutting out a few cups of coffee or lunches at your nearby fast food outlets and in no time flat you'll have saved up the extra money that you need.

Now, it's time to unveil "The Simple $10.00 Debt Elimination Solution." Take that extra $10.00 and add it to the minimum monthly payment above, therefore making a payment of $37.50. By adding just that $10.00 a month to your minimum payment, you'll trim 23 months or nearly two years off of that credit debt! On top of that you'll save $277.00 in interest alone! That's money you can put toward savings or paying off other debts. Imagine how much you'd be able to save if you applied this same simple strategy to each of your other credit card debts!

Paying down credit debt doesn't always mean having to make huge monthly payments or sacrifices. It just takes some basic planning and a simple effective strategy to make it work.

? 2004, www.yourfreecreditreportnow.com

About The Author

James H. Dimmitt. James is editor of "TO YOUR CREDIT", a weekly free newsletter to help you manage your personal finances. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com. He is also author of "Identity Theft - How to Avoid Becoming the Next Victim!" available at http://tinyurl.com/bc45; jimdim815@aol.com

limousine chicago service
In The News:

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40%... Read More

Eliminate Your Credit Card Debt, But How?

Can a debt consolidation loan eliminate your credit card debt?... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

Bankruptcy, Is It A Way Out

Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More

Think for a Change

I'm not sure where it originated, but I've heard it... Read More

Help to Get Out of Debt

Debt Help is the stepping stone to debt elimination and... Read More

A History of Money and Banking Secrets That Banks Dont Want Published

A History of Money and TradeTo start with a history... Read More

Slowing Spending - The Key To Your Debt Plans Success

Anyone who embarks on a debt reduction program should know... Read More

Are You SURE Your A Bad Debt?

Many people who seek the advice and guidance of debt... Read More

Dont Let The Good Times Bury You

It is vital to get rid of debt while things... Read More

Credit Card Debt: How to Get Rid of It

This method is simple, but requires some discipline.First, you have... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... Read More

Five Hot Tips To Get Out Of Debt Forever

The financial and psychological burden of being in debt causes... Read More

The 5 Secrets to Getting Out of Debt Fast

As they stare down at a teetering pile of bills,... Read More

IVA Advice

An IVA (individual voluntary arrangement) is an alternative to bankruptcy... Read More

What You Should Know About Bankruptcy

Filing bankruptcy is not only a last resort legal action;... Read More

Future Secured? Oh Really?

A headline for a retirement annuities flyer declares "Future Secured!"... Read More

Debt Elimination

If you're reading this article right now I'm sure that... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

How Do I Lower My Debt Burdens?

How do I lower my debts?There are several ways of... Read More

Different Ways Of Dealing With Debt

Bills, creditors, debt collectors. Are you yearning for the days... Read More

Are You Beating Up On Yourself About Debt?

When you hear the word "debt", whats the first thought... Read More

Can You Escape the Trap of Ever Growing Debt?

It's difficult not to be concerned when facing numbers like... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand... Read More

The Five Most Popular Questions About Bankruptcy

WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law,... Read More

led outdoor flood light bulbs street light fittings Pete's produce ..