Sometimes life pushes us down, in spite of giving our best shot. The same goes for your credit card debt that you collected, even though you tried hard not to. Even though there are credit cards for bad credit and what not - if you’re smart you will use them efficiently to get out of the debt trap that you fell into. Finding yourself in debt can be draining in more than one way, which is not good. In the following article we discuss a few tips on bring down and eliminating your credit card debt so that you can lead a debt free life...
#1: Budget Before the Month Begins
The first thing that you need to do is create a budget for each month with the projected income/expenses. This will give you an idea as to how much of your monthly income you would be able to allocate towards debt reduction. For some this may sound a little tedious but doing it tends to throw light on how quickly the little things like "eating out" can add up. In addition to this, you should also allocate some money from your paycheck and save it an online savings account for emergencies.
#2: Make Payments on Time
Keeping aside how much money you would be able to pay towards clearing your debts each month, see to it that you’re making timely payments. By making late payments you give creditors a chance to raise your interest rate, which means more of your payment goes towards paying interest rather than paying down your existing balance. It doesn't matter how you’re paying, whether it is through the mail or online, make sure you don’t get late on your payments.
#3: Commit to Paying More than the Minimum
While it’s a fact that you should try and pay your credit card debt in full each and every month, it’s not possible always, and for everybody. So if you find it difficult to do so, at least ensure that you’re paying more than the minimum amount each month. The more you’re able to bulk up your minimum payment, the better it is. But have an aim of paying at least three times more than your monthly minimum payment. Since you’ll be paying your balance faster this way, it will bring down the total amount you pay to your lender.
#4: Go for a Balance Transfer Card
Do you have multiple credit cards to pay off? If yes, then you should consider getting one of those balance transfers cards. By getting this card, you’ll be able to pay off your debt without worrying about the growing interest. Catching up on your payments becomes a lot more easier because on these cards you get up to 18 months of interest-free time. You won’t have interest adding up on your current credit card debt, giving you ample amount of space and time to get out of the whole debt mess.
#5: Ask for Rate Reductions
By simply calling and asking your credit company for a rate reduction you can have your interest rate lowered. When you take the step to pick up the phone and call, you may get a yes because many times credit card companies give some type of reduction. While there are no guarantees as to whether they will or won’t, you should try. You won’t know until and unless you call and find out.
Your credit card debt doesn't have to be a big problem, unless you choose to make it so. There are much bigger issues/problems that happen around the world such as a ruptured gas pipeline or a natural disaster. The point that we’re trying to make here is - as long as you’re able to take responsibility for your credit card debt and commit to paying it off, you will that it actually isn't that big of a deal.
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