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    A Simple Strategy to Start Reducing Big Credit Card Debt

    Jun 28, 2017
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    If you're having a difficult time getting rid of your credit card debt, you're not alone. According to data from the Federal Reserve for Outstanding Revolving Debt, the average American household faces about $16,000 worth of credit card debt. To make matters worse, the steady price increases of products and services leave most people with very little spare funds that could go toward paying off their debt.

    Clearing your credit card debt may be one of the more difficult challenges you'll have to deal with, but it's not totally impossible. By taking the right approach to clearing your debt, you should have an easier time working your way toward financial freedom.

    1. Start with achievable goals.
    Let's face it: clearing an average debt of $16,000 is not a trivial matter. Even if your debt is just around $10,000, you still need to face a lot of challenges to come up with this amount of money. Many people just give up after seeing what's left, but you shouldn’t be discouraged; when it comes to clearing debt, every bit of progress counts.

    While clearing debt might not be instantly achievable, the entire debt-clearing process can get much better if you start from a more advantageous situation. You can get there by starting with more achievable goals. If completely clearing debt is not yet an option, work your way toward reducing it to a more manageable amount.

    2. Cut down your expenses correctly.
    This one may seem like a no-brainer, but many people still fail to get this right. Cutting down your expenses frees up more funds that can go to clearing your debt. The more you spend, the more likely you'll get into situations where you'll have to use your credit card, making the problem even worse. However, this doesn't mean you should start cutting down on your essentials.

    The best approach to this is to write down all your monthly expenses and see which ones you can do away with until the debt is more manageable. Check if you have active service subscriptions that you're not using much and see if you can funnel the funds for that into reducing your debt. Setting maximum acceptable expenses for the stuff you regularly spend on can also go a long way in reducing your debt.

    3. Get help from the pros.
    Clearing a big debt isn't always something you can do on your own, especially if you don't have enough experience in managing your personal finances. Fortunately, you can get help from the pros and enter a debt relief program to help make your debt more manageable.

    A debt relief program is perfect if you're already struggling just to catch up with your debts’ interest or if you keep missing the payment date. Through the advice and intervention of a debt relief agency, you will have a good chance of reducing your total debt sooner. They will also help you develop a plan of action.

    The financial adviser assigned to you by your debt settlement company will help you sort out which accounts to settle or deal with first. The sooner an account can be cleared, the sooner that particular debt stops adding to your problem. In addition, the debt professional will also do all the work when it comes to negotiating with your creditors. The assistance of a seasoned debt settlement company will give you a better shot at reducing the total amount of your debt by a significant percentage. 

    Most people focus on clearing the debt as soon as possible but fail to see the power of debt reduction. Now that you know the right approach to clearing your debt, you only have to stick to your strategy and you'll be on your way to being completely debt-free.

    If you like this article use this search term #ReduceMyDebt or click on this link to discover other articles on this similar topic. 

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