A lot of people have an awful lot of credit card debt. This puts them in a position of being at a risk of financial trouble, but also costs them a lot of money as long as the debt continues to pile up on the credit cards.

Gregory Bresiger, at Investopedia, says that many people have at least $5,000 in credit card debt. He says with that
amount:

"Assuming you make no new purchases and pay a fixed $150 each month for the next several years, how long will it take to pay off the $5,000 debt? Three years and 11 months. You will also end up paying approximately $2,000 in interest. That's a lot of money to pay for credit."

If you paid an interest rate of 18% on your credit cards, then, you also need to realize that if you wanted to gain that amount each month – simply eliminate your debt. The money that you have then each month will surprise you. How quickly can you pay off that debt and give yourself a raise?

• Students Can Save Money on Flights with an Air Miles Credit Card
• Stinky: Credit Card Companies Pass Along Your New Card Numbers
• Best Way to Save Money
• A Word of Caution about Balance Transfer Credit Cards
• Credit Card Tip
• Have You Checked Your Credit Card Bills Lately?
• Can A Balance Transfer Credit Card Help Reduce Debt?

You can leave a response, or trackback from your own site.

3 Responses to “Why You Should Reduce Your Credit Card Debt”

1. Until Debt Do US Part says:

   February 27, 2009 at 12:23 am

   Sure credit cards are expensive.

   A simply way to continue to pay the minimum amount and save on the interest is to find credit card deals where it is possible they offer a 0% interest rate for an inital period. There will be a small fee to do this but if your balance is large enough you should be better off.

   Remember to always research the deals on offer. The banks are in it for a profit so be careful and read the small print.

   Reply
2. julya2@link.net says:

   April 26, 2009 at 7:06 am

   Greeting. The place of the father in the modern suburban family is a very small one, particularly if he plays golf.
   I am from Barbuda and also now teach English, please tell me right I wrote the following sentence: “Where to find the synthroid pills x.”

   Thank you so much for your future answers . Alger.

   Reply
3. Mathew says:

   June 28, 2009 at 2:35 pm

   excellent article you have written here. thanks for the informative and entertaining read. quotations are a great way to inspire you to perform at your best and to remember sage advice from the smartest minds in the world. I found a great site for credit card debt at http://smartdebtrepair.com

   Reply