How can it be done?

Let me share with you 10 practical steps which you can adopt:

Step 1: List down your debts one by one

Most of the Americans have 3-4 credit cards on hand. Before applying for a new card, you need to find out your total debt. In order to have a clearer view, you are advised to list down the outstanding balances for each card one by one. This is the very first step you should take to move towards debt free.

Step 2: Knowing your debts in detailed

You are reminded to list down the interest rates and late fee charges for each card too. You must make sure you know all the details of your debts before taking further action. Some credit card providers do not allow the cardholders to transfer their balances within certain period.

Step 3: Search for a zero balance credit card

After knowing the total amount of debt, you can then proceed to find a new card which allows you to transfer all your outstanding balances. You need to contact the card providers to find out the credit limit. It is important for you to confirm whether the credit limit offered is enough to cover your total debt. If it is not enough, you need to find out whether it is worthwhile for you to transfer partial of your debt.

Step 4: Find out whether there is any fee associated with the card

Some card providers in the market do charge upfront fee at the time of transfer. Some may waive the fee during introductory period. Hence, you need to find out whether there is any additional cost you need to bear.

Step 5: Read the terms and conditions carefully before transferring your balances

Many zero balance transfer credit cards will charge extremely high late fees if the card users delay their payments. Before taking up the card, you are reminded to get all the terms and conditions clear.

Eliminating debt is a challenging process but you are encouraged to “enjoy” the process. Although it might be very stressful for you to bear heavy financial burden, you are reminded not to be depressed.

Step 6: Work out a realistic budget plan

Have you got a budget plan with you? If no – start working out one based on your monthly income and expenditure. Make sure you have sufficient fund to pay off your monthly payment.

Step 7: Pay more than the monthly minimum payment

If possible, try to cut down some of the unnecessary expenses so that you can raise more cash to pay your debt. If possible, pay more than the monthly minimum payment. By doing so, you will be able to get rid of your debt faster.

Step 8: Start paying off high interest card

If you fail to transfer all your debts, you are advised to transfer the balances from those high interest cards first; then only followed by low interest cards.

Step 9: Consider a second balance transfer

You should plan for a second balance transfer when you have a big sum of debt.

Step 10: Face your debt issues with positive attitude

Your goal is to become debt free. You can achieve it as long as you face it with courage. Eliminating debt is a challenging process but you are encouraged to “enjoy” the process. Although it might be very stressful for you to bear heavy financial burden, you are reminded not to be depressed. Life will turn out to be much better after you have cleared all your outstanding balances.

Applying for a zero balance transfer credit card will not enable you to erase your credit card debt completely overnight. You need to have strong determination and patience to pay off your outstanding balances within certain time frame. Besides, you must also stop creating new credit card debt. Watch out your spending habit and don’t swipe your card anymore as long as you haven’t cleared your previous debt.

Watch the video clip above and you’ll know that it’s harder to pay off your credit card debt since there’s a loophole in new credit card laws requires that your lender applies your payments to your credit card balance with the highest interest rate.

…credit card users are advised to pay as much as they can over the minimum since every dollar over the minimum gets applied to your highest rate.

It shows that people are making only the minimums of that particular month will have their higher-interest balance will continue to add up. Therefore, credit card users are advised to pay as much as they can over the minimum since every dollar over the minimum gets applied to your highest rate.

via MyFoxTampaBay.com

How long does it take to pay off your credit card debt? Use our credit card debt payoff calculator – click here.

If you have massive multiple credit card debts – try out this method: Paying off Your Debt Fast by Paying the First Month’s Minimum Constantly or negotiating with the creditors for credit card debt settlement.

Here’s what you need:

• Microsoft Excel
• A credit card debt payoff calculator – click here

The key to make this strategy fool-proof is that you stop spending with your cards and constantly paying the first month’s minimum every month. It enables you to eliminate your debt in just a few years and save some money in interest.

Here’s what you need to do:

1. Start getting all info intact

Gather all your credit card statements and sort it out into different credit card companies. Find out the total outstanding balance for every credit card company that you owe.

2. Create a simple spreadsheet to find out how much debt you owe

Create a chart on an Excel spreadsheet and label columns as follows (click picture to enlarge):

This step allows you to find out how much you actually owe and when you should make payment since different credit cards have different due dates.

3. Finding the actual cost of your debt

At this step, you have to use an online credit card debt payoff calculator and start inputting details from your spreadsheet (i.e. total outstanding balance, interest rates (APR); minimum payment) into the online calculator (click picture below to enlarge).

The key to make this strategy fool-proof is that you stop spending with your cards and constantly paying the first month’s minimum every month. It enables you to eliminate your debt in just a few years and save some money in interest.

4. Print out the chart and place it somewhere you can see it often

As the chart displays the actual cost of the debt and duration of the paying off debt process, you have to place it someplace where you see it regularly as a form of encouragement – which you can pay more than the minimum.

If you are having difficulties making fixed-month payment as planned – start looking for a credit counselor or negotiate with the creditors for a debt settlement.

It’s hard to expect when such unfortunate event would happen on you and there are few circumstances that you don’t have to take responsible for your spouse’s debt:

• Certainly, if the card is under your spouse’s name and the debt is owed by your spouse
• If you or your spouse are a second cardholder on the account who has charging privileges and the account is not a joint account

On the other hand, the surviving partner is fully responsible for the credit card debt with these circumstances:

• If you or your spouse are a second cardholder on a joint account – in that case, you have the bear your spouse’s responsibility to pay off card debt because your name is listed in the credit report
• You’re likely to take full responsibility for your spouse’s debt if you reside in community-property state. However, these rules vary by state. Therefore, you have to consult your lawyer for more details about common property law in your state.

Since you have to bear your spouse’s responsibilities to pay off your debt – what should you do? Follow the 5 steps to below:

1. Inform all creditors that the account holder has passed away

You have to send a copy of the death certificate and other related documents including the account number to the credit card companies. Keep a copy the letter for your future reference and remember to send the original copy via certified mail as a proof that the mail has been delivered to the right recipient.

2. If your spouse has savings or assets – use it to pay off debt

If your spouse has cash savings or any valuable assets, you have to pay off the total outstanding debt with it. If you’ve any questions about making payment with your spouse’s assets, you can refer to the executor.

3. Be firm and don’t simply answer all calls from the debt collectors

Answering relentless debt collection calls might the most difficult part to handle. You need to succumb to such pressuring calls from the debt collectors for a short period of time. If it’s regarding paying off debt with your spouse’s assets – always remember to clarify all doubts with the executor. Don’t simply answer all questions that you’re not familiar with.

4. Make sure the debt does not exceed the statute of limitations

Most people would get rid of their debt legally without paying a single cent if their debt has passed the statute of limitations. In that case, if the debt collectors asking for a debt payment which the debt has passed the statute of limitations – get a lawyer to help you get out of debt that you’re not responsible for.

5. Settle debt with the creditors on behalf of your spouse

If your spouse doesn’t have any assets, you have to act fast to negotiate with the creditors for settlements. In this case, you can make a settlement offer and make the best offer that you can. Once you’ve reached to an agreement, make sure it’s done in writing before you start making payment.