If you have intention to be free from credit card debt, first of all you need to change your behavior of depending on credit in your purchases, before you talk about how to reduce and get rid of your exiting debt. You must adopt a “Cash is King” policy in all your purchase if possible and stop using your cards. The purpose of not using your cards is to avoid adding new debts into your existing debts while you work out to clear it.

Then, look at your credit card balance. Multiply it with a factor of 0.5 and the result is the amount that you need to pay in your next payment. For example, if you have a $1,000 credit card balance, you first payment is $500. In the second month, multiply again the balance of the month with 0.5, which will be the second payment. Repeat the step every month to pay off 50% of it. By doing so, your credit card debt will be pay off in 6 to 8 months.

In term of interest, if you calculate the exact interest that you end up paying, you will surprise how much interest you will save by just do this simple payment method. For example, if you credit card account had a 15% advertised interest rate, you would only pay 2.5% of interest by paying the 50% of total balance each month. You may find it difficult to pay the 50% of the first payment, especially if you have large amount of credit card debt, but you may make it possible by tracking and controlling your spending so that you can allocate more money from your earnings to pay toward your credit card debt. You may need to get a second job to earn extra money for the debt payment.

Another little tip, if you really need to use your credit card to buy large purchases, you should structure the large purchases where you can afford at least 50% payment schedule. For example you want to buy a $1,000 computer but you only have $500 cash in hand and you want to use the computer right away, then you have no choice but to borrow the money using your credit card. Then, get it with your credit card, and immediately pay the $500, and then 50% in the following months until you clear it.

Summary
It is possible to pay of your credit card debt fast while saving you some good money of internet by using the above simple method. You can only make it possible if you really have the intention to clear it and work it out so that you can pay the 50% of your credit balance each month.

Cornie Herring invites you to be debt free in 12 to 39 months or visit her website at http://www.debt-consolidation-1stop.info to explore more information on debt relief options.

Related posts:

1. How To Pay Credit Card Debt Off
2. How to Lower Your Debt Through Credit Card Debt Negotiation
3. Tips on Credit Card Debt Management – The Problems With “Life Takes Visa”

There is a valid reason for this. First of all, consider that once you get the loan check, you can spend the proceeds on anything. There is nothing that says that you have to use the loan to pay down debt. You could use it to go on vacation or buy a car. In addition, lenders know that getting a loan to pay off another one does not make much sense. They understand that if you use a loan to pay off credit card balances, that it is very easy to start charging purchases back to those same credit cards before the loan is paid off. Then you could end up owing almost twice what you originally owed.

Lenders know that you cannot “borrow your way out of debt.” Now it is true that some people do pay off high interest balances and benefit from a loan used to pay off debt. However, the trends are for debtors to find themselves with even more debt than when they first got the loan to reduce their debt.

If you have debt that you are trying to pay off with a loan, then your most feasible option is a balance transfer from one credit card to another. You may benefit from a much lower interest rate. The challenge of course is avoiding a situation where you max out both cards. This can help reduce interest for a while, but it will not reduce your balances unless you start increasing your monthly payments.

Lenders simply are not willing to take too many risks when your purpose for the loan is to pay down debt. Your credit score is already lower in a large part because of your high debt load.

If you are looking to reduce interest and possibly lower your credit card payments, then consider an alternative to loans. Credit counselors can show you how to accomplish these things without a loan. Better yet, you do not need excellent credit to benefit from their programs. If you are in debt, consider meeting with a credit counselor today and forget about that next loan application!

Kenneth Long began his public service with nonprofit organizations in 2001. He has since conducted workshops teaching other nonprofit executives how to integrate credit counseling with volunteer tax preparation programs. The most recent of these include a workshop at the National Community Tax Coalition annual conference in Los Angeles.

Long is a regular contributer to information provided on Lower Credit Card Payments.

Related posts:

1. Why Credit Management Sometimes Needs Debt Management
2. How to Pay Off Debt – Everyone Want to Know How
3. Free Debt Management Programs – Are There Free Debt Management Services?