Simple Steps To Reduce Consumer Debt

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Do you lie awake at night wondering how you’re going to make minimum payments on your mounting credit card debt?  Extreme financial stress can cause serious emotional turmoil that begins to infect relationships, damage careers and effect sound judgement. Follow these basic recommendations from the financial experts to get your financial house back in order. With a seemingly never ending barrage of commercials and ads from nearly every major media outlet attempting to persuade you to purchase their goods and services, it can be completely overwhelming.

In order to succeed in any endeavor, you must have a plan. Start by making a list of all of your debts balances and minimum payments. Either itemize these on a legal pad or list on a spreadsheet. Order the debts from the small balance to the largest. There are two schools of thought of which balance to pay off first. One option to pay down the debt that carries the highest interest rate to reduce the amount of interest paid. The second option, and the one that is recommended here, is to pay off the debt with the smallest balance. This second option is based on the need for psychological reward. When you see that you’re accomplishing step in your plan towards meeting your goal, this serves as continuous motivations. In order for this process to succeed, it is imperative that no new credit card charges be incurred. If you must make discretionary purchases, take advantage of the awesome deals offered by Groupon coupons and shop the incredible sales available at Macy’s.

There are three ways to pay off credit card debt. The first is to redirect all discretionary spending to towards the reduction of the debt. The second is to secure additional income in the form of a part time job and direct all of those earnings towards debt reduction. The third is the combination of the first two. Best of luck to you in paying off your debt and living debt free!