Lesson 3: In our ongoing Wealth Wisdom video series, we’ll teach you financial fundamentals. In this third lesson, Jerrie Guthrey, a certified public accountant and credit counselor for 19 years, will explain how to get out of credit card debt:
Here are methods to get out of credit card debt described in the video:
- The first step is to quit adding new credit card debt. This is easier said than done.
- When you receive advertisements for sales and deals, throw them away. Shopping won’t help.
- The second step is to pay off the credit cards with the smallest balances.
- Once these are paid off, you’ll have more cash to pay toward the higher interest rate loans.
- Next consider transferring your balances from high rate credit cards to low rate credit cards.
- Make sure you know what your interest rate is going to be after the transfer.
- Consider visiting your local bank, savings and loan agency, or credit union, and find out what kind of low interest rate credit cards they may be offering.
- As you control your spending, get rid of all your credit cards but one, and use it for emergencies only.
Learn More: This is a good summary of how to get out of credit card debt. If you’d like further Credit Card Debt Advice, you can read more here.
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