Removing Credit Card Debt
A Word Against Credit Card Companies
Credit Card Debt = Slavery!!!
An average American has a credit card debt of $9000. Much of the fault lies with credit card companies who can charge up to 35% interest, yet they ask only for a small amount as minimum payment. This is a deliberate strategy to keep customer in debt for a very long time. The gainers are few stake holders of the company and the loss is of the entire nation.
Try to get rid of credit card debt as soon as possible. Stop charging your card unless it is extremely necessary. It is a modern form of slavery in developed nations. In fact, it is worst than slavery because the credit card institutes this slavery, yet they make you feel guilty for lack of discipline and getting into debt. From now on, look at these credit card companies with scorn and not pride. The famous the credit card company is, the worst it is for you; it has got famous at your expense.!
How can you plan to repay your debt
When you get your next statement, ask the credit card company the interest rate you are charged. Put this information along the planned monthly payment in the software, and it will generate a report which will tell you the time taken to get rid of entire debt, how much you will end up payment, and monthly breakdown of the balance due that you can see reducing every month and a chart from which you can see much of the information in one glance. In summary:
You supply the following information:
- The current balance (from statement)
- The interest rate charged by the credit card company (ask this information from your credit card company when you get the current statement)
- The amount of monthly payment you wish to pay to get rid of deb
The software will provide to with following information that will help plan to repay your debt:
- With the given monthly payment, how much time it will take to pay the entire debt. The monthly breakdown is also provided
- How much you will end up paying when you pay the entire debt. This will motivate you to increase the monthly payment to get rid of debt as soon as possible
- Some shocking facts and charts
Screen Shots:
Following are the screen shots of the software application. It shows the problem defined that will generally meet your requirement. You need to supply the right numbers appropriate for your situation. Click on Do Calculation to see the answer you are looking for and some shocking facts
The monthly breakdown is useful for matching with the monthly statement from credit card company. The Balance Remaining should tally the balance due from the monthly statement. This should give you confidence in your analysis and should serve as a guide to being debt free - with a small step every month.
The chart shows that initially the balance due decreases slowly (or large proportion of your monthly installment goes into servicing debt). In time however the balance remaining amount starts sharply decreasing till all the amount is paid in full. You may also use the chart to guess if you can pay entire balance in one go near the end of loan period and become loan free.
