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FINANCIAL GOALS

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Goals >> clearing debt >> i want to clear my credit cards

Credit cards can be lethal to your finances if you're not careful, but once you have a plan you can clear them. We show you exactly how to pay off credit card debt so you get back in control.

Step 1 -- Set your intention




a	Do: Commit yourself to clearing your debts



b	Do: Get support

Step 2 -- Work out how much you owe on credit cards




a	Work out: How much credit card debt do I have?



b	Do: Contact lenders if you're struggling with repayments

Step 3 -- Work out your monthly income




a	Find out: How much do I get paid?



b	Find out: How much do I earn from other jobs?



c	Find out: How much do I earn in interest or dividends from savings and investments?



d	Find out: How much do I receive in tax credits or benefits?



e	Find out: How much do I earn in bonuses?



f	Find out: How much do I earn from overtime?



g	Find out: What's my average monthly income?

Step 4 -- Work out your outgoings




a	Do: Get all of your paperwork together



b	Work out: How much do I spend on compulsory expenses?



c	Work out: How much do I spend on essentials?



d	Work out: How much do I spend on luxuries?



e	Consider: Do I need to budget for any big expenses?



f	Work out: How much do I spend each month?



g	Find out: Am I wasting money on unnecessary credit card charges?

Step 5 -- Consider using savings to clear your credit cards




a	Find out: How much do I have in savings accounts?



b	Find out: Am I paying more interest on my debt than I'm earning on my savings?



c	Work out: How much of my savings should I put towards my debts?



d	Find out: Is my most expensive credit card my most expensive debt?



e	Decide: Should I use savings to pay off my credit cards?

Step 6 -- Cut your credit card interest rates




a	Do: Check your credit report



b	Do: Speak to your card provider



c	Decide: Should I arrange a low rate credit card balance transfer?



d	Find out: Can I cut my interest repayments using a credit card I already have?



e	Decide: Should I consolidate my debts?



f	Consider: Could I pay a lower interest rate by using a low rate personal loan?



g	Work out: How much have I saved in interest payments?

Step 7 -- Create a payment schedule




a	Work out: What's my disposable income?



b	Work out: How much can I afford to pay off my debts each month?



c	Find out: What's the best way to allocate my credit card repayments?



d	Decide: How should I split my credit card repayments?



e	Decide: What's the best way for me to make repayments?



f	Work out: How long will it take to clear my credit cards?

Step 8 -- Stay focused on paying off your credit cards




a	Do: Keep a spending diary



b	Do: Start working to a careful budget



c	Consider: Can I spend less without noticing a difference?



d	Consider: How can I earn extra money?



e	Do: Use spare cash to clear your credit cards faster



f	Do: Regularly check you have the best rate credit cards you can get



g	Do: Keep making repayments until you've paid off your credit cards

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