NCAA basketball isn’t the only type of March Madness going on this month. Take a shot at financial bracketology and developing debt repayment strategies to eliminating credit card debt.
How To Eliminate Credit Card Debt
In the spirit of March Madness, we have laid out a plan for you to eliminate credit card debt. If this is one of your neglected New Year’s financial resolutions, take a look at the plan illustrated below to help you get started.
Round 1 of Financial Bracketology
Round 1 of financial bracketology is all about laying the groundwork for a successful debt repayment strategy. It starts off with getting organized: knowing all about your debts, payment due dates, interest rates, etc.
Once you know these details, you can think about setting goals and creating a budget. Whatever your goals are, they must be incorporated into your budget. However, if you want to eliminate credit card debt, then be sure to factor that into the budget.
Finally, to accomplish your financial goals and manage your budget effectively, minimize spending. Overspending is pretty much like a foul: too many and you will completely throw yourself out of the debt reduction game.
Round 2 of Financial Bracketology
In Round 2, it’s important to push forward by developing a strategy to eliminate credit card debt. You now know what you can afford to pay based on your budget and decreased spending. Therefore, you have all the details you need to really layout the framework of your plan.
Contacting your creditors is the other part of Round 2. Depending on the creditor, they may be willing to reduce or suspend interest rates as you work on debt reduction.
The Finals: Eliminating Credit Card Debt
Finally, as you enter the finals, eliminating credit card debt is at your fingertips! When you make that last payment, remember all the ways you got the debt and all the ways you got out of debt. Keep budgeting, good spending habits and setting financial goals in mind as you move forward debt free.
To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.