Credit Card Debt Help
Are you stuck in debts and looking for credit card debt help and solutions to reduce and later, eliminate all your credit card debts? There are several options.
One of them is to go for credit card debt counseling. The counselor will among others, help you create a budget, advice you on how to settle your payments and offer recommendations.
You can look out for credit card debt relief from one of the debt settlement companies. But before you decide on a company, check it out, study the pros and cons and look at the benefits and terms. Be very careful of scams.
If you owe several credit card companies and have a problem making payments, you might want to look into credit card debt consolidation. Once again check the company you are dealing with and look at the advantages and disadvantages.
Choosing any one of these credit card debt help approaches indicates that you cannot personally manage your money. All these credit card relief methods have an effect on your credit score. The credit card score which is also known as FICO score is calculated based on your payment history, credit to debt ratio, credit in use, new credit, payment history and some others. But it is better than having to file for bankruptcy.
The best way is to do it yourself when it comes to credit card debt settlement. But it requires that you make several lifestyle changes and create the disciplines when it comes to credit card debt elimination.
Credit Card Debt Help - How to Reduce Credit Card Debt
Credit card debt help tip No. 1 - How much is your current outstanding credit card debt?
How much do you owe and what is the total amount of interest are you paying? These are two important questions that you must ask yourself. You cannot afford not to know. One of the reasons for your continuous credit card spending is because you aren't aware that you are paying unnecessarily for the high interest rates.
Write or key in all your credit card debts, your monthly payments and the interest costs that you have to pay out. If you are only paying a minimum amount for your credit card debts and continue to spend recklessly, it's almost impossible to reduce and eliminate your debts.
Use this credit card payoff calculator to work out how much and how long you will have to make your payments. Change the figures accordingly.
Once you know where you stand, create your monthly budget. State the amount of money you earn and the amount of money required for your monthly expenses and your credit card repayments.
Credit card debt help tip No. 2 - Start a plan to pay off your credit card debts.
If your money is so tight, make a goal to pay the smallest amount first until you settle the full payment and at the same time paying the minimum amount on all the other credit cards. If you can, pay more than the minimum for the card that you plan to settle first so that you can eliminate it faster.
It is however better to pay off the amount with the highest interest rate first. This is because the longer you take to reduce this debt; the more you'll be paying for the interest.
When you've made a full settlement on a card, you will feel so relieved and satisfied because you've accomplished a goal that you've set out to achieve. Don't use it or better cancel it.
Credit card debt help tip No. 3 - Stop using your credit cards.
If you don't stop using your credit card for your purchases, you'll keep accumulating debt. What's the point of paying a minimum amount and spending the same amount right after paying it off?
Impulse buying is one of the reasons for uncontrollable credit card debts. Buy cash if you must. Hold on to your desire to purchase something that you want until you have saved enough and can afford to buy it. This means you must have self control and self discipline.
Credit card debt help tip No. 4 - Transfer high interest credit card debt to low interest rate card.
You can also transfer your high interest credit card debt to your lower or zero interest card. There is usually no additional cost involved. Try to pay more than the minimum amount to eliminate your debt faster.
Credit card debt help tip No. 5 - Pay on time.
Make sure you pay on time to avoid the extra charges for late payments. Making late payments affect your credit score. If you can, pay in full. If you can't make sure you pay the minimum charges.
Credit card debt help tip No. 6 - Negotiate for a lower increase rate.
The other method is to deal direct with the credit card company and negotiate to lower the interest rate or work out a credit card debt settlement schedule. Compared to dealing with credit card debt counselors who charge a fee, this is normally at no cost.
Credit card debt help tip No. 7 - Increase your income or earning.
If you have nothing left after putting aside your monthly expenses and paying your credit card debts, you are likely to use your credit card. This will go on forever and you'll find it almost impossible to reduce your credit card debts, unless you find another way to increase your income or earning.
What you can do is find a job that pays more, get a second job or look for other source of income. If you are a single mother, you may have to sacrifice your time and energy to hold two jobs. There is an alternative and that is by working from home in the evenings doing things that will help you earn without leaving your kids behind.
Avoid taking a personal loan.
Some people choose to take a personal loan to pay off their credit card bills. If you are eligible, make sure you check the interest rate before you decide. Once your personal loan is approved, make sure you pay off your credit card debt.
Change your lifestyle.
You must change your lifestyle and live within your means. How much are you paying for your home, your car and your utility bills? Take a look at it and see where and how you can cut cost. Renting a cheaper place will save you money.
If you own two cars, you can sell off one of them. You can also reduce your electricity, water and gas bills if you really want to cut your expenses. You can use the money that you save here to pay your credit card debts.
Change your spending habits.
You can reduce your spending on groceries. Live the frugal lifestyle. Buy in bulks, go for sales and go for cheap living. Many single women who are living alone prefer to eat out instead of cooking. Cooking for one and eating alone do make some women feel lonely. But think about it, being lonely and broke is worst.
If you do need company, have a pot luck and invite some friends over once in a while and arrange to rotate among your friends. Cut on the girl's night out and the karaoke sessions.
Don't carry your credit card with you.
Leave your credit cards at home. If you must have one just in case of emergency, carry only one. This serves as a reminder and prevents you from spending on things you don't need.
Develop self discipline.
Be disciplined. One of the ways is to associate pain with having credit card debts and link relief and peace of mind with being debt free. No matter what, restrain yourself from buying things of impulse, buying on credit and buying things you can do without.
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