{"id":6222,"date":"2014-08-04T06:04:08","date_gmt":"2014-08-04T13:04:08","guid":{"rendered":"http:\/\/couponshoebox.com\/tips\/?p=6222"},"modified":"2014-08-01T10:04:33","modified_gmt":"2014-08-01T17:04:33","slug":"experience-financial-freedom-by-paying-down-credit-card-debt","status":"publish","type":"post","link":"https:\/\/couponshoebox.com\/tips\/experience-financial-freedom-by-paying-down-credit-card-debt\/","title":{"rendered":"Experience Financial Freedom by Paying Down Credit Card Debt"},"content":{"rendered":"<p>Carrying balances on multiple credit cards is common for many people. Credit is not cheap money and, as often becomes the case, interest on those balances quickly escalate your debt to an overwhelming amount. When you realize that your credit card debt is causing a financial hardship; or you just want to get a handle on the amount you owe, it\u2019s time to look at ways to pay down &#8211; and hopefully pay off &#8211; those expensive credit accounts.<\/p>\n<h3>Advantages to paying down credit card debt<\/h3>\n<ul>\n<li><strong>Less overall debt.<\/strong> It\u2019s wise to live within your means as much as possible, which means, if you can\u2019t afford it now, don\u2019t buy it until you can.<\/li>\n<li><strong>More\u00a0expendable\u00a0income.<\/strong>\u00a0Wasting your hard-earned money on outrageous interest charges does nothing to enhance your economic strength or standard of living.<\/li>\n<li><strong>Lower credit card bills.<\/strong> Having less credit card debt to pay means you&#8217;ll have\u00a0more of your income available to you.<\/li>\n<li><strong>Higher\u00a0credit score.<\/strong> This advantage may be less obvious than the previous ones, but it\u2019s <em>very<\/em> important. Paying down debt lowers your \u201cdebt utilization\u201d (the amount you owe compared to the amount of credit you have available) which is reflected favorably in your credit score.<\/li>\n<\/ul>\n<p>Many people, unfortunately, live under the assumption that credit card debt is a fact of life. While there\u2019s nothing intrinsically wrong with credit, it\u2019s all too easy to let balances get out of hand and find yourself paying far too much of your income repaying expensive money. Coming to the realization that it\u2019s time lower your credit card debt can be an empowering step toward taking charge of your financial resources.<\/p>\n<h3>Ways\u00a0to pay down credit card debt<\/h3>\n<p>There\u2019s no \u201cone\u201d way or \u201cright\u201d way to pay down (or pay\u00a0off) credit card accounts. First, take a good look at your current credit situation to assess the degree of your debt and its impact on your finances. Then\u00a0make a plan that will allow you to see progress that will inspire you to stay the course until you\u00a0reach your goals.<\/p>\n<p>As you begin the process, it may be worth your while to contact each credit card company and inquire about\u00a0a lower interest rate. If you&#8217;re able to procure one, you\u2019ll be saving on interest charges right off the bat.<\/p>\n<p>Next,\u00a0identify strategies\u00a0that will motivate you, personally, to really take a bite out of your credit card debt.<\/p>\n<p>Would you prefer to:<\/p>\n<ul>\n<li>Tackle a card with a big balance first?<\/li>\n<li>Whittle down an account with a particularly high interest rate?<\/li>\n<li>Experience the satisfaction of paying off a lower balance in full?<\/li>\n<li>Pay considerably more than the minimum due on all your accounts?<\/li>\n<\/ul>\n<h3>Where will you get the money to pay down your credit accounts?<\/h3>\n<p>Whatever tactic you employ to choose what accounts to focus on, you\u2019ll need to devote some money to your plan. Consider these sources for that money:<\/p>\n<ul>\n<li><strong>Existing expendable income &#8211;<\/strong> Determine how much of your current income you could you devote to paying down debt? Are there areas where you could economize to free up more?<\/li>\n<li><strong>Savings &#8211;<\/strong> Applying savings to your debt will help you free up more money to save in the long run.<\/li>\n<li><strong>Low-interest loan or balance transfer &#8211;<\/strong> Consolidate high-interest debt into a lower-rate loan. Once your credit cards are balance-free, vow to use them more judiciously.<\/li>\n<\/ul>\n<p>Your credit card bills don\u2019t have to rule your budget! Credit card debt can be whittled down and eliminated with a commitment and a plan of action. Living without the burden of high credit card bills is a financially empowering way of life.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Carrying balances on multiple credit cards is common for many people. Credit is not cheap money and, as often becomes the case, interest on those balances quickly escalate your debt to an overwhelming amount. When you realize that your credit card debt is causing a financial hardship; or you just want to get a handle [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[519],"tags":[45,75],"_links":{"self":[{"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/posts\/6222"}],"collection":[{"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/comments?post=6222"}],"version-history":[{"count":5,"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/posts\/6222\/revisions"}],"predecessor-version":[{"id":6227,"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/posts\/6222\/revisions\/6227"}],"wp:attachment":[{"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/media?parent=6222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/categories?post=6222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/couponshoebox.com\/tips\/wp-json\/wp\/v2\/tags?post=6222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}