Credit card remains to be a huge problem for many people. Credit card debt not only negatively affects your credit score, but it also is damaging the economy and preventing growth. This does not even account for the stress and emotional toll that your credit card debt is inflicting on you every day.
The sooner you get a grasp on your credit card debt and start making changes to get yourself closer to living debt free. If you are like many who want to lift the weight of credit card debt off your shoulders, but are not quite sure where to start, here are a few tips to help you pay off your credit card debt and finally live debt free.
Negotiate with your credit card companies
You do not always have to be satisfied with the payment plans or interest rates that credit card companies give you. Call your credit card companies directly and try to negotiate reducing the amount you owe, adjusting the payment plan, or lowering your interest rates. Any of these adjustments will help you pay off your debt faster and maintain a good standing with your credit card company.
Depending on your credit history and the credit card company, they may not be willing to negotiate with you as much or at all. Do not be discouraged if this happens and simply use the other tips listed here to help you reduce your credit card debt.
Pay off cards with the highest interest rates first
This may seem like a pointless piece of information, but the order that you pay off your debts in will make a big difference in the total amount that you have to pay in the end in interest. Some people may suggest paying off the smallest debts first, but no matter the size of the debt, you should always start with the highest interest rates. Work to paying as little as you can in interest and keeping more of your money. Even transferring your debt by using a loan like TitleBucks to pay off larger debts can lower your interest rates, monthly payments and stress.
Cut up your cards, but don’t close them until they are paid off
When you get really serious about ending your credit card debt, it is tempting to just cut up all of your credit cards and operate on a cash basis only. This is effective in preventing you from creating more credit card debt for yourself; it will not help you reduce the debt that you have. Stop using your credit cards, but do not forget about the balance that each one of them holds. Keep them in your wallet to remind you of your credit card debt, so you might make more intelligent decisions when sending money.
Create a budget plan for paying off your debt and eliminating future debt
Find out what payments you need to make each month to keep interest rates under control. Then figure out how much to can pay towards your credit card debt each month without creating more financial trouble. Devise a plan to help you remember what to pay each month and how much. Once you have paid off your debts, you can use the same budget to help you start a savings plan.
Image: http://www.savemoneytips.com/using-credit-cards-advantages-and-disadvantages/