Getting into unmanageable credit card debt is easy. The challenge is finding relief and a credible organization to aid in the process. Charging utility bills, groceries, vehicle expenses and other items to credit cards may be convenient and even cost-effective if your card pays dividends on those purchases.
However, if you do that, you may tend to spend your cash on unnecessary things and forget to pay off your credit card. If you do not pay the entire balance on your card each month, you’ll accrue an excessive amount of interest. That added interest has the effect of making each charged items more expensive, and your interest rate determines how much added expense you will incur. If you make only the minimum payment on your balance each month, you could be paying almost double for the things you charge.
Get Professional Help
If you have friends, co-workers or family members who are financially responsible, ask them for recommendations about getting rid of credit card debt. Their advice about the subject may be especially valuable because they know your spending habits. However, if you’ve exhausted all your options and are unable to deal with the problem firsthand, it may be time to seek professional help. In that case, a debt-management service can assist you in overcoming the financial difficulties created by excessive credit-card debt. Debt counselors will help you develop a plan with strategies tailored to your personal circumstances, and those strategies should help become financially stable. A lot of people seek credit card relief from Consolidated Credit. Additionally, you can begin right now to change your habits if you are serious about getting out of credit card debt.
Avoid the Credit Card Traps
Stop using credit cards unless you are positive that you can pay your balance in full when you get the bills. If you are easily tempted, put your cards in a place where retrieving them will require great effort. Here are some other useful suggestions for taking control of your debt:
- Call your card provider to ask for a lower interest rate. The company may or may not grant your request, but you will not know the answer until you make the call.
- When you have more than one card, pay the minimum on each one every month, and if you can pay more, apply the extra money to the card with the highest interest rate. This tactic reduces your balance faster and helps lower the total amount of interest you have to pay.
- Alternately, you can pay more on the card with the lowest balance to help eliminate it quickly. After you pay off that card, keep using the same principle for each of your other cards, but never reduce the total amount you are accustomed to paying towards credit cards until they are all paid off.
Ways to Save Money
Learn to cut your expenses until you get your credit cards under control. There are various ways to save money without depriving yourself of the necessities.
- Get a part-time job
- Walk or ride a bicycle instead of driving
- Dine out less frequently
- Pack a lunch for work
- Shop at garage sales or thrift stores
- Rent movies instead of going to the theater
- Take advantage of free entertainment like playing games with family or friends
- Buy a water-filtering pitcher, and drink home-filtered water instead of paying for bottled water
- Eliminate soft drinks from your diet
You may discover that some of your cost-cutting measures are enjoyable and decide to continue the practices even after you pay off your credit card debt. If you get more exercise and eat healthier food, you should enjoy better health as well.