How to pay down your credit card debt
News from ABC Action News:

TAMPA – Paying with plastic is a convenience that has led many buyers into massive debt. Making the decision to pay down your credit card debt is a step in the right direction, but it isn’t always easy to know how to begin. Which debt do you pay off first? How much do you need to pay each month?

When you’re serious about paying down your credit card debt, the first step is to stop charging. If you keep adding to the amount you owe, you will only dig yourself deeper into debt. To help bring your spending in line with your current income, create a monthly budget and make a commitment to follow it.

Even if you cut up your credit cards, you won’t get out of debt by making just the minimum payments each month. Those small payments go toward paying the interest of your debt, but they won’t make a dent in the actual balance. Once you begin spending within your monthly budget, you can use some of your savings toward making larger payments on your credit card debt.

If you have multiple credit cards, you will have to decide which ones to pay down first. Start by making a list of all of your credit cards, the balances you owe and the interest rate on each card. Generally speaking, it’s best to pay off credit cards with the highest interest rates first.

When making a plan to pay down your credit cards, you should also look at any other debts you may hav…………… continues on ABC Action News

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Credit Card Debt: The #1 Deal Breaker for Mortgage Loans?
News from Home Buying Institute:

Home buyers with a lot of credit card debt may find that a mortgage loan is out of reach, even if they make enough money to afford the payments. Based on our ongoing surveys of mortgage lenders in the United States, we are seeing a rise in the number of borrowers being turned down for having too much credit card debt.

Further evidence of this trend comes from the home buyers themselves. We receive about two-dozen questions every week, mostly from first-time buyers. Many have shared stories about being pre-approved for a mortgage loan, only to see the deal fall through later due to their debt ratios. The frequency of such stories has risen sharply over the last couple of years.

Make no mistake. Mortgage lenders today are very concerned with how much credit card debt a borrower has. In fact, debt levels are one of the top factors that can make or break a person’s chances of getting a loan. Credit scores and down payments are also high on the list.

Credit Card Debt Statistics

How much credit card debt do you have? More importantly, how much of your income does it eat up every month? These ar…………… continues on Home Buying Institute

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