New Year’s Resolutions, Anyone?
I know a lot of us make resolutions and break them before this time each year! This is one reason I don’t even make them any more. That doesn’t mean that I don’t make sound and resolved decisions to change things that I want to change or make goals that I want to reach. I just don’t get too much into the hype of the New Year’s Resoltion gig. It’s just never worked for me.
Well there are two resolitions that are normally high on everyone’s list. One is to lose weight or get fit, and the other is to get out of debt.
Today we will tackle the debt part. I found a great article on the Frugal Dad with some very sound and practical advice on killing that credit card debt! Remember when tackling debt… high interest is the first thing you want to get rid of! The rest he outlines very nicely. Below are a few of his tips and link to the entry on his blog! Read well, and soon we will talk about losing weight… ugh!
Excerpt taking from frugaldad.com (source link at end of article)
Ten Steps To Paying Off Credit Card Debt
1. Save three months of expenses in an emergency fund. You may be asking yourself, “I thought this was a list of tips for getting out of credit card debt?” It is, but to do so you must first create a cushion between you and the emergencies currently financed on your credit cards. I didn’t take my own advice here when I first started my journey for debt freedom. It wasn’t long before our home’s air conditioner broke, my car’s brakes began to fail and I was forced to run up debt to make repairs. Back to square one. My second attempt began with saving up three months of expenses in a savings account. Not $1,000, not $5,000, but three months worth of expenses; no more, no less. This provided a buffer for future emergencies so I could avoid resorting to credit cards to finance the inevitable hiccups that happened along the way.
2. Take an inventory of your debt. Once you have identified why you want to get out of credit card debt, and have saved an adequate emergency fund, you will need to list all of your credit card accounts. Include the account number, current balance, interest rate, minimum payment, credit limit and contact number. This is a painful step, because most of us walk around not really knowing exactly how much we owe. We have some idea, but it usually significantly less than the actual number. Finding out the actual amount is kind of like having a bucket of ice water dumped on your head.
3. Contact each credit card issuer’s customer service number. Take a deep breath, dial the number and walk through the verification procedures. Then explain that you are in the process of consolidating cards and would like your account reviewed for a lower interest rate. If they decline, ask to speak to a supervisor and repeat your pitch. If they decline, thank them and hang up. Resist the temptation to close the account at this point, no matter how angry they make you by refusing to lower your interest rate. You will be calling back to cancel the credit card soon enough.
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