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09.20.2011 / Three Strategies to Reduce Credit Card Debt.

Credit card debt may lower your credit score and can keep you from reaching long term goals such as savings or purchasing a home or car. From transferring your credit card balance to a new card with a low introductory APR on balance transfers to reducing costs by consolidating your high interest debt with a personal loan. There are strategies to help you reach your financial goals and eliminate debt.

"Credit card debt may lower your credit score and can keep you from reaching long-term goals "

#1: Transfer your balance to a new card with a low introductory APR
If you are carrying a large balance on a card with a high interest rate, consider transferring your credit card balance to a new card with a low APR on balance transfers. If possible, aim to pay off the transfer before the introductory period is over. 

#2: Consolidate your high-interest debt
Consolidating your high-interest debt with a personal loan can help you reduce the amount of interest you are paying while possibly eliminating your debt more quickly. Use First National Bank’s online calculator “Should I consolidate my debts?”  to find out if this is a good option for you. 

#3: Use a debit card instead of your credit card
Many people use credit cards for convenient, quick purchases. Debit/check cards may be a better option to ensure you aren’t spending money you don’t have. Debit/check cards replace checks and cash while enhancing security and record keeping. The amount of your purchase is automatically deducted from your checking account, providing adequate funds are available, and allows you to stay within your spending limit.

Have you tried any of the tips above or do you have some of your own?  Please share them.

Posted at 03:42 PM | Permalink
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