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Consumer tip of the week: Ways to reduce credit card debt
Monday, February 12, 2001
Do you have credit card debt hanging over your head? Make the commitment to get yourself out of debt.
Stop using your credit cards. Pay in cash or don't buy. Always pay more than the minimum payment. Even paying $10 or $15 extra will save you money in interest in the long run.
Pay off your highest interest rate credit cards first.
While continuing to meet all of your credit obligations, put as much extra money as you can toward the highest interest rate card. Once that is paid off, add that payment amount toward the card with the second highest interest rate. Repeat as necessary until all credit card bills are paid off.
A consolidation loan at a lower interest rate may help you get out of debt faster. Remember to cut up your credit cards so you aren't tempted to run up the balances again. Set a budget and stick to it. Review your expenses and identify overspending. See where you can cut back and eliminate any unnecessary expenditures. Eliminating debt can be done, but it will take some time and effort on your part.
Caryn Bilotta is education director for Consumer Credit Counseling Service of Western Pennsylvania. For more information, call (888) 511-2227 or visit its Web site at http://www.cccspa.org/.
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