Yes You Can Reduce Your Credit Card Balance

Is there anything more irritating than your credit card statements? I mean you paid them last month right, and the balance hasn't gone down much at all. I'm going to give you some tips on how to pay down the balance painlessly. Do you realize that only 2% - 3% of your payment goes to the principal the rest is the interest charge? That means on a $2000.00 balance at 10% interest your payment will be $204.00. $200 is the intrest and $4 is the principal. Next month your balance is $1996.00 providing you did not charge anything new. Your payment will be $203.59- $199.52 interest and $4.07 will be paid on principal. It goes on and on month after month. See why it will take you 15 yrs to pay it off?

Now you can bump up how much goes to the principal with this simple strategy. During the month when you spend cash only use your paper money do not use your change. For example Starbucks latte Grandee is $3.26 pay for it with $4.put the $.74 in a jar at home preferably a clear glass jar so you can see it piling up. People tend to like visuals. Do this all month long. You will be amazed at how much change you will end up with at the end of the month. This is how you can make every penny work for you. Now at the end of the month you can either roll the change yourself and deposit in your bank account to be USED ONLY ON YOUR CREDIT CARD PAY DOWN, or you can take the change to one of the change machines at your local grocery store and the store will give you spendable cash for the change. Keep in mind thought the change machine will charge you about 10% for the service. I roll my change while sitting in front of the TV watching the news or something. Put the change you collected over the month on the credit card along with your minimum payment. In no time at all the Credit card will be paid off and you did not have to come up with EXTRA money, you already had it.
If you have more than one credit card pay only the minimum on them. Start with the card that has the lowest balance. Using the change for cash method the balance will disappear rapidly. Next step after that 1st card is paid off use that extra money you now have (because you have eliminated a payment) and apply that to your next lowest balance card. Good Luck and Happiness to you being debt free.
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