With the cost of borrowing set to rise again and an increase in the number of people being declared bankrupt there is no better time than to start thinking about credit card debt reduction.

Every purchase made on a credit card means you have less money to spend than if you had paid cash. Buying today on a credit card means that because of the additional interest you will have less money to spend in the future.

Interest on credit cards means that if you buy something for 100 then it costs you about 1.5% of that 100 each month. That means if you pay it off over a year it has cost you something around 15% more than the cash price. If it takes you longer then the bill just keeps rising month on month.

Buying on credit cards doesn’t feel like you are using real money so you buy more, you buy more often and you pay a lot more in the long run. If you want to pay more than the ticket price then pay cash and give the salesgirl a 15% tip or keep it for yourself and your family. Why pay it to the credit card companies? They need it less than you do.

If you buy goods on credit cards and continue to do so you will get to the point where you can’t afford to buy anything. You will be spending a bigger and bigger part of your monthly salary on paying back those credit cards and as time goes by you will find yourself overwhelmed by those debts. A small emergency like having your wages reduced for a time by illness or emergency payments will push you over the top.

Don’t let it happen to you. Keep your credit card debts as low as you can. Pay them off as fast as you can and use your credit cards as little as you can. Start working on a program of credit card debt reduction now. Not tomorrow or next week. Start today.

Add up your monthly interest on your credit cards. It may well shock you. Do something about it. The credit card companies are only interested in making money from you. The money they make is money you could spend on yourself and your family.

Don’t let the credit card companies control your life. Start on a program of credit card debt reduction and discover just how much money you will have to spend on the things you need for yourself and your family.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

Related posts:

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  2. Debt Reduction By Reducing Your Expenses
  3. Spending And Credit Card Use
  4. Credit Card Balance Between Suppliers And Customers Has Become Unbalanced
  5. Credit Card Calculator

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