Monday, October 16, 2006

Strategy for lowering credit card debt

The number one rule to reduce debt is “keep hope alive.” One important way to do this is to deal with the sense of guilt involved with having debt in the first place. It’s important to note that many of God’s finest people struggle with debt. According to The Dallas Morning News, the average student loan debt for a new pastor coming from seminary in 2001 was $25,018. If you have debt, you have a lot of company. We often start behind, and it is hard to catch up, especially for those in ministry. You have to be brave to even start addressing this issue.

A second way to keep hope alive is to tally all your debts. List the company’s name, balance, interest rate and monthly payment. Circle the lowest balance. Make it your first victim. Pay the other accounts their minimums and put all extra debt reduction efforts into paying off this account. When it is paid off, use this extra amount towards your next lowest balance.

Third, cut expenses. Drink water instead of tea. Eliminate unused or unnecessary services, such as premium cable or expensive cellular phone plans. Reducing expenses is easier than earning more income because new income is subject to both Social Security and income taxes. Consider: a person in the 15% income tax bracket must actually earn $12.27 extra to have $10 to use against debt because of taxes. Because of the unique tax status ministers face, they must make $12.80 extra to have that same $10 to attack the debt.

Finally, continue your generous giving to God’s kingdom. When we are under pressure, we need God’s blessings even more. Could there be a worst place to cut back than on our commitment to the God whose blessings we need so badly?


Anonymous said...

great blog! very substantial
A secured credit card is a great way to build up credit if you have a bad or non-existent credit rating.

Secured Credit Cards For People With Bad Credit are a great way to establish or re-establish credit. With a secured credit card, your credit limit matches the security deposit you provide. With good payments you can be considered for unsecured credit card offers.

Once you have a secured credit card, you can engage in credit repair by using it sparingly but regularly, and making sure you make all payments on time. By doing this you will slowly repair your credit.

Have a super day!

100Student said...


I recently published an article on the dangers and benefits of student loans and other forms of college financial aid – here is a quote from it, in case you are interested:
Student loans repayment can be a real nightmare without adopting some strategies that would help the new graduates to organize their social and financial life. Here are some strategies they can use to do this:
- An additional part-time job;
- Freelancing is another option (meaning that they can do particular pieces of work for different organisations, without working all the time for a single organisation);
- They should try to keep their living expenses as low as possible (live in a smaller apartment, live with a roommate to share some of the expenses, find an apartment that is closer to the job, to eliminate the extra-expenses for transport etc.);
- To apply for forbearance (this is an immediate solution for hard times when the new graduate is in impossibility to re-pay the amount of money and the need for student loan consolidation becomes apparent; it is a temporary period, when the graduate can postpone or delay his or her re-payments until a later time on a federal or direct loan after the beginning of the re-payment, and when the student doesn’t qualify for deferral). The forbearance must be applied through the lenders of the loans.
- To consolidate the payments.
If you feel this help, please drop by my website for additional information, such as federal student loans information or additional resources on private student loans .