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When times are good, you think you will always be adequately able to pay off any credit card debt incurred. Unfortunately, when times get rough and income is reduced, credit card payments are not reduced. Being in debt can be a stressful prison in which to live, especially if the debt is from credit cards. Credit card debt is especially bad because the interest rate on credit cards is much higher than on other loans, causing you to pay a lot more money than you should. The following suggestions can help you eliminate and manage your credit card debt: limit spending, take out an second mortgage on your Alberta home, apply all extra income to credit card payments. The first step to eliminating your credit card debt is to limit your spending. It’s a pretty simple formula, spend less than you earn. For some people, this may require them to destroy their credit cards and pay for everything they can with check, cash, and money orders. Others may be able to destroy all but one or two credit cards that have very small balance available. This option will only be good if you pay off the credit card balance each month. The second step that can help a lot is to leverage your Alberta home and take out a second mortgage. The money that comes from the second mortgage is then paid directly to your credit cards. If you have credit card debt that is higher than the amount of funds you receive from the second mortgage, then identify your credit cards with the highest interest rates and pay them off first. If you follow this method, you will drastically lower the amount of interest you pay. In addition, if you have several credit cards, consolidating all your payments (or as many as you can) into one payment simplifies your life. It is easier to remember to pay one bill on time than it is to keep track of 20 different credit cards and their due dates. Even the most conscientious bill payer can miss a due date with so many credit cards and other bills each month. The amount of money you can save on late fees alone is worth the effort to obtain an Alberta second mortgage. The final suggestion is to identify how much money you need to spend on your debts and living expenses each month. Then you need to come up with an extra amount of money, even only a hundred dollars each month. Next, choose one credit card, either one with the highest interest, or one with the lowest balance. Each month, in addition to the balance amount, apply the extra money to that credit card. This will pay off the credit card faster than paying the minimum payment. When the card is paid off, take the total amount of money you have been paying to that card (minimum plus extra) and repeat the process to a second card, then a third, until you get them all paid off. Caution: This method only works is you never use the paid off credit card but remember to live within in your means as discussed in the first suggestion. Ace Moving and Storage can can help with your second mortgage
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