How to Eliminate Credit Card Debt

Video Transcript

"How to eliminate credit card debit well, again, don't use credit cards if you cannot pay them, that will be the quickest way for you to eliminate credit card debit. The alternatives to using the credit cards will be to using your debit card, as an example, because they work just as exactly the same way your credit card would and what are you doing? You're only just using money that you have available currently in your checking account rather than having to extend yourself out on a credit side of things. If you need to have to use the credit cards or you are in a situation where you've already have thousands of dollars in credit cards already outstanding out there, then what you want to do is to go ahead and stop using the credit cards, right now. Stop using them, put them away in a safe place where you don't have to see them on a continued basis or, at least, where the temptation is not there for you to have to use them and then set up a payment plan as to how you can pay this thing back within a reasonable amount of time. If the interest rate is rather high, if it's a ten, twelve, fifteen, nineteen, twenties, something percent, you want to maybe call your bank and ask them to lower your interest rate for you because that way, guess what? more of your payment is going toward principal reduction rather than you just paying interest. So, setting up the, obviously, the repayment plan that way and then set out exactly how much you can pay on a monthly basis. Is it two, three, four hundred dollars and then on your statement look at how much of that, you estimate, would be going towards the interest portion because, again, the key thing is to eliminate credit card debit. This is my advice to you as to how you can do that."