Dealing with Your Credit Card Debt
Dealing with credit card debt is by far the hardest type of debt to deal with. Why? First of all, one factor is because credit card debt holds an interest rate that’s very high compared to all other types of debt that you currently have.
As I have mentioned earlier, because interest rates of credit cards is high, consolidating them is going to prove to be very effective since it will be very easy finding and getting another loan that’ll have better interest rate and at the same time offer you the comfort of paying just one small monthly debt bill compared to others.
The moment you consolidate your debt, you automatically no longer have to deal with high interest rates and late fees that you get every single day the moment you deal with a lot of credit card debt.
But fear not as there’s always a way out from it. Here’s a simple plan that you can follow:
1. Make a list of ALL your debt. Take time to write down all information like credit card names, amounts, interest rates, and contact numbers.
2. Call each credit card company. Ask if they can try and consider to lower interest rate or at least the minimum payment. Write down, if any, the changes to interest rates.
3. Make a little sacrifice. Set aside your credit cards. Make a commitment not to make new purchases that can add up new charges onto them, until you get the debt paid off.
4. Now, take a look at your budget. Are there some things you can cut back to get extra cash to pay towards the credit cards? Try considering cutting back on eating out, personal wants (clothing, make up, accessories), etc.
5. If there’s nothing you can cut back, try looking for some items you can sell in Ebay, garage sale, etc. Do what it takes to raise some money. Remember, a little can go a long way!
6. You might want to consider getting a second job especially if you have a lot of debt, this will be a good idea.
7. Once you find the extra cash, start paying off the debt. Check the summary list you did in step one. You can either choose paying the one with the highest interest rate first, or the lowest balance. Start keeping the extra cash you have for you to pay the next bills that will arrive.
8. Once bill #1 is paid off, move on to the next one.
9. When you’ve completed paying off all the bills, celebrate! But don’t put it on your credit card!