How To Reduce High Interest Debt

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I have 10,000 dollars in credit card debt. I got a credit card while I was in college, my freshman year I got a letter in the mail promising no interest for the first year if I signed up for a credit card. I signed up and I never even thought about how i would have to pay it all back, and when I missed my payment I was charged with so many late fees. I just kept spending money, I bought a thousand dollar watch, whole new wardrobe, a new car, and a trip to The Bahamas. I eventually had spent 10,000 dollars that i needed to pay back. I live in Waterloo, Iowa and rent a house for $425 a month and $12 for renters insurance. I pay $115 a month for utilities such as electricity, heat, and air conditioning. I have a cell phone with talk, text,…show more content…
If you only make the smallest payment possible you are taking much longer to pay off the debt and increasing the amount of interest.
The most effective way to reduce the amount of money you spend each month is to cut what cheat you do not need. The more money you spend on things you do not need the less money you have to make payments which causes your interest to go up. If you could write what you do not need you will have extra money left over to help your payments.
Three ways I can make sure I say out of bad credit card as I get older are: Do not sign up for a credit card unless I know what I am doing; always have a monthly budget and make sure I never go over the spending amount I have set for myself; and do not rely on a credit card to help you pay for things because it's not money you have, it is money borrowed and you have to pay back interest.
I am going to ensure I am paying the lowest price possible on my expenses without sacrificing my enjoyment by understanding that the name brand is not always better and using my set budget to help me get what I need
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