Pay Off Charge Card Debt Today

January 30, 2010

By system

Credit card accounts have become a vital piece of the average American life. Unfortunately most people do not fully understand credit card accounts and because of this, many Americans have an abundance of charge card debt that they don’t know how to pay down.

There are many of factors in paying down charge card accounts. To begin with, before you can begin paying down charge card debt, you will need to understand 3 key factors which I will outline and explain for you:

1. What credit cards were intended for – I feel that it is extremely important that I explain this because in the process of paying off credit card accounts, you will most likely still be using them for purchases. When paying off a credit card while using you will need to utilize it properly. Credit cards were intended for convenience and safety. They were not created as a financial crutch. Credit cards should only be used for purchases that you can pay off at the end of the month in cash. Over use of credit cards is the number one reason for financial instability in the United States.

2. How credit card interest works – There is something on your credit card statement that you will find called your daily compound interest rate. This is usually a small number such as .0428% that really doesn’t seem like much but you will see shortly how this can affect you. Write this number down so that you can follow a simple exercise and find out how much money you are being charged and why it is so hard to pay off your account. What I want you to do next is take this number and multiply it by your balance. For example, if you owe $10,000.00 you multiply that by your daily compound rate of .0428% so your formula would be $10,000.00 X .000428 = your daily interest in this case it would be $4.28. The worst part about this is that you are not only paying $4.28 interest after 30 days because tomorrow we would do the same calculation but now it’s $10,004.28 X .000428 = the second day interest in this case $4.29. As the month goes by the daily interest grows along with your balance. This means you are not only paying interest on your balance, you’re paying interest on your interest.

3. How to find help – First off I want to let you know do not seek help from a debt settlement or debt consolidation company. These programs harm your credit score. There are ways to get out of debt fairly quickly without harming your credit score. One of the best companies for credit card debt help is Jem Credit Cards you can visit them at www.JemCreditCards.com or call (561) 355-0069 they will give you a great deal of free information depending on your current situation.

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