Credit Card Debt
How to eliminate credit card debt
Credit card debt is a major problem in our society, simply because it's extremely easy to get into debt using a credit card. Most credit cards have high interest rates that only go higher when you default on a payment or go over your limit. These interest rates can make it hard for anyone to pay down their balance, especially if it's in the thousands and they're just barely managing to make the minimum payment every month.
If you've got creditors calling incessantly, or if you just want to learn about how to use your credit cards wisely, here are some tips on how to eliminate credit debt so that you can preserve your credit rating and be able to buy what you really want.
Ways to Eliminate Credit Debt
Although it may feel as if you'll never get out of debt, following a simple plan can help you bring down your credit card debt and increase your credit score. Follow these steps to help you with credit debt management:
- Make a list of each of your credit cards and how much you owe. Include the outstanding balance, minimum payments and interest rates. This will put your debt into perspective and give you a realistic look at what you'll need to do to lessen it.
- Once you've totaled the minimum payments of each card, think of ways you can save money so that you can pay more than your total minimum payments. The more you pay, the faster your debt disappears.
- Consider getting credit counseling to help you with your debt. The counselor may suggest credit card debt consolidation, which allows you to pay a low monthly payment that will benefit all your bills and protect you from annoying creditor calls.
- Speak to your credit card company about lowering your interest rate. If you've been a good customer thus far, they may agree to this plan.
- Think about transferring your balance to a low APR credit card, if possible.
- If your debt is really out of control, you may consider credit repair and credit debt settlement. This should be accessed as a last resort, since debt settlement may involve legal proceedings and you may even have to file for bankruptcy.
Credit card debt is embarrassing, but with help, you can become debt-free. Be patient — it can take months or even years, but with a plan in place and help from a credit counselor, you can eliminate your credit debt and better your credit score.