Credit Card Help
Getting into credit card debt is easy. With low minimal repayments and high credit limits, incremental purchases on clothes, holidays, restaurants, etc. can easily put a person into the negative. If you have found yourself in a position where you have maxed out your credit card or credit cards and need help to make your repayments, there are a number of things you can do.
The first thing is not to panic and to organise your debts in order of priority. One way to do this is to look at the cards with the highest interest rates and or fees. Creating a budget in tandem with prioritising the credit card debt will help provide a clear picture on how to manage the debt and your overall expenses.
Once you have a clear understanding of your overall finances and a plan on what you would like to pay off first, implementing strategies to speed up the process is next. Below are a few of the most popular and most effective ways of getting out of credit card debt.
Options for credit card help include:
Balance transfer: If you can qualify, consolidating multiple or one credit card to another low interest card is very beneficial. This can reduce interest repayments as well as the monthly repayment amount. In addition, it can be easier to manage as it is only one repayment a month versus multiple. In many cases you can find balance transfers which will provide up to a year – no interest!
Pay more than the minimum: Regardless if you utilise a balance transfer or not, paying more than the minimum is highly recommended. This not only pays of the debt quicker but also reduces the amount that you pay in interest repayments.
Do not use the cards – cut them up: One of the best ways to stop any additional spending is to get rid of the cards. Remove the temptation of spending borrowed money by getting rid of the cards.
Balloon Payment: One way to try and either get rid of all the debt or take a big chunk out of the debt is to find some extra cash and pay it all towards the debt. Turn junk or unwanted items into cash and use it to pay down the debt. Ideas include a garage sale, selling stuff on ebay or other classified sites, cancelling unwanted services and putting that money towards the debt also. Get creative and surprise yourself.
Contact your credit provider: If you are finding it hard to make your repayments, contacting your creditor directly may be an option. Depending on your situation, many creditors may work with you to help relieve financial pressures for a short period. This will not only help financially but also with your credit rating as they may not report defaults or late payments to the credit agency.
The above are some of the main and most popular ways of handling credit card debt. A combination of multiple tactics can even help the process of getting out of credit card debt happen quicker. Feel free to share additional ideas in the comments section on credit card help.