Reducing Credit Card Interest Rate with Financial Planning Control

Taking Control of Debt and Leaving it Behind

The headlines of late have been grim. Increased mortgage foreclosures, personal bankruptcies and credit card delinquencies are making the news o¬n a daily basis. The statistics of 2003 are alarming: mortgage debt reached $6.8 trillion in, more than eight times the number of people filed for personal bankruptcies than during the Depression, and Americans paid $65 billion in credit card interest. These numbers are a wake-up call and should be enough to spur most of us into financial planning control patterns such as saving more, spending less and reducing our debts.

If you have encountered any of the following, it is time for taking control of debt by reducing credit card interest rate:

• Increased anxiety about money and financial obligations leading to sleepless nights
• 30% or more of your salary technically belongs to your creditors
• You continue to overextend your credit limit and pay penalty fees
• Your savings account is close to zero or nonexistent
• You pay the minimum payment only and/or pay late, thereby incurring penalties
• Your credit card balances do not decrease and if so, this is o¬nly slightly noticeable
• You use your credit card to pay for groceries, gas and other day-to-day expenses because you don't have cash

After deciding to take control of your finances, it is easy to feel overwhelmed by the amount of information available. Do not despair. The first step is always to evaluate your necessities and see where you can cut expenses. Necessities are defined as food, shelter and basic utilities like electricity.

You will have to sensibly cut out “extras” which includes eating out, unnecessary clothing purchases, expensive gifts and any impulse purchases. Typically, we will all buy more than originally planned when there is a sale or some other great offer that seems to good to be true. Don't worry about a fleeting opportunity. Merchants will always find a way to entice you to spend your hard-earned dollars; you just have to make sure that you spend your money when the timing suits you, and o­nly to buy things that you need.

By simply thinking before you spend any amount, you will make sure that you are not jeopardizing your long-term goal of getting out of debt and planning for your future.