This program will help you undo financial bondage.
This debt reduction method reduces the amount of finance charges you pay to the lowest possible level using credit accounts that you already have at your disposal. Consolidate debt using your current low interest credit card(s) unused credit amount to pay off your credit account(s) with the highest interest charge. This is called a balance transfer. Only use this method when transferring the balance will not cost anything up front and when the financial institution will not charge you an interest percentage that is equal to or higher than the account that you’re paying off.
The highest interest revolving charge accounts are normally those issued by retail establishments because most charge you around 25% in interest for every dollar that is charged and not paid off in total when the first payment is due. This means the financial institution is charging you twenty-five cents on each dollar that you let revolve from month to month. That’s why it normally takes so long to pay these credit cards off when you make only minimum payments. Nowadays, you also have to beware that many financial institutions that offer visa, mastercards, omni cards, diners cards, etc. will charge you more than this amount if they believe you are or have become a poor financial risk since you applied for the card. Some are charging upwards of 30% interest, which is 30 cents on every dollar that revolves from month to month.
This is not good for your financial health. This is why you must quickly pay off your credit cards and develop a mindset to refrain from using them, unless you have the money saved to pay your entire charges off when the first bill comes due. Some people who have been greatly undisciplined in using credit cards in the past need to cut the cards up and close the accounts no matter what certain financial pundits say about it ruining your FICO credit score. If they don’t cut them up and eliminate them from being a part of their lives, they will never eliminate that debt demon guiding their spending activities and their FICO score will wind up being terrible anyway as their debts grow larger and larger hampering their ability to pay their bills each month and on time.
Don’t listen to advisors who encourage you to keep instruments that you know by past history will keep you steeped in debt (credit cards, etc.). Insurance rates is not a good enough reason to keep the temptation around when your past history has shown that it is likely to keep you in bondage. Some insurers utilize credit scores to determine how they will rate policyholders home and auto insurance, but there are also many you can find who do not utilize credit scores to determine premiums. Focus on eliminating debts to one day live debt-free.
When you plan this out and work at it using a singular focus, the debt-free lifestyle will be yours sooner than you currently think possible. When you have paid off all your debts and your credit history shows this and you’re not racking up other debt then you will not be hurt by FICO scores. In fact, you’ll likely have a good FICO score, yet you won’t need it because the provision that comes forth from using biblical financial principles will bring to you all the resources needed to obtain everything you really need and everything that is really good for you.
If you don't have enough available credit on a low interest credit card to pay off all your high interest credit accounts, then apply for a low interest consolidation loan at your financial institution. Consolidation loans are normally closed-ended, which means whatever is paid off is not re-usable. This is good when your past has shown reckless undisciplined spending. Don't consolidate any of your accounts that have an interest percentage that is less than the consolidation loan's interest charge because you don’t want to pay more in interest on that account.
Before using this approach, it's best to call retailers to close any of their accounts that you have open and cut up the cards so you won't be tempted to use them again. Besides, retailers cards do not normally allow you to balance transfer other outstanding balances onto their cards in order to consolidate other debt onto one card. They are simply designed and issued to engage you in buying more and more of their products without regard for what will truly be financially best for you and your family.
May God bless you richly as you follow His plan!
