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A debt consolidation loan can be an excellent tool to assist in reduction of credit card debt. Consolidation loans carry interests rates far below those of credit cards. In long run, a great deal of money can be conserved through use of a personal loan.
While in many segments of society, word "self restraint" is passť, out of style like last year's fashions. But, in reality, very best way of reducing credit card debt is through self restraint.
Of course, it is easy to bandy around words self restraint and much, much harder to practice personal control.
Although it might seem comical on surface, cutting up credit cards is a perfect first step to reducing credit card debt. No cards, no charging, less debt.
Many people leave payment of their credit card accounts at bottom of monthly bill pile. Other primary accounts -- rent, electricity, phone, and like -- understandably take a higher priority over credit card bills. But, oftentimes a person will spend money on incidental purchases before taking on credit card balances. In end, credit card account may not be paid on at all or, if so, after deadline.
One way to ensure that credit card payments are made and one way to ensure that credit card debt is kept under some degree of control is via an automatic payment system on credit card accounts. A person's bank can arrange for credit card account to be paid automatically each and every month.
By ensuring that at least a base payment is made on credit card accounts each and every month, accelerated interest rates and late fee penalties will be avoided.
Neil Brown contributes to personal finance sites such as uk credit cards and personal loans.