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How do I reduce my credit card debts?

Posted on: 08th Nov, 2006 01:19 am
I am in a lot of debt. I make $45,000 a year and have $18,000 in unsecured debt. I am slowly trying to pay off credit cards and then close them. I tend to find myself making large payments on the credit cards, but then needing to use them because I don't have enough cash on hand. I know I need to pay them off, but using them again because I need them is defeating my purpose. What should I do?

Hi James,

Welcome to the MortgageFit Forums.

Seems like you are on a mission. I guess you are doing most of things right to pay of your debts. What I could make out from what you have written is that it seems that you don’t have a firm grasp on your monthly expenses. For this you can put together and budget and observe your monthly income and monthly expenses.

Or, what you can also try is that pay your normal expenses for month and pay only the minimum amount due on your credit cards. Save the rest of the money in a separate account. By doing this you will clearly come to know how much you can afford in a month to pay on your cards.

If you find that there is no or very les money left over than you will have to take a hard look at your purchases and cut down unnecessary expenses.

Posted on: 08th Nov, 2006 01:47 am
Hi James,

It's a good thing that you are trying hard to pay off your credit card debts. Here's a word of advice for you – pay off the high interest cards first and then the lower ones.

It seems that you cannot stop yourself from using the cards quite often. Well then, after some time, it will be really difficult for you to manage the debt. This is because on one hand, you are paying off the debts and on the other hand, you are piling up debts again.

I think the best thing for you is to try and find out areas where you can stop overspending. Just think as to where your money is going. Sort out the items on which you feel you can restrict your expenses. Practice this for at least a few months and you'll find yourself in a healthy financial situation.

You can refer to our previous discussion on how to make an Ideal Realistic Budget.


Posted on: 08th Nov, 2006 02:19 am
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