Credit card debt is the most cunning adversary to securing your financial future. Unfortunately, many college students obtain credit cards while still in school as they don’t have any education on credit cards. Credit card companies use attractive promotions to entice consumers by increasing credit limits, offering pre-approval, and providing complimentary gifts. All of these strategies attempt to install the habit of spending now and paying later.
Once credit card payments become the largest part of their monthly budget, then people realize how destructive this habit can be. Credit card debt, as a percentage of income, has been on the rise for the past two decades. If not stopped right now, one has to pay severe consequences in the future. Just like cigarettes and alcohol, credit card is an addiction which is hard to get out off; however, the reward is worth the effort. A debt-reduction strategy called The Debt Reduction Pyramid will enable you to completely pay off your credit card balances.
The Debt Reduction Pyramid is intended to help you pay off your balances quickly and painlessly. This strategy is the same as if you tear down a pyramid. If you did this, where would you start? The most logical place is the tip, since the foundation is so massive. You would begin at the top, removing one brick at a time until the entire pyramid is torn down. Thus, you will pay off your balances, one payment at a time. There are four simple steps to follow. Below is a diagram of the pyramid.
