Tips on managing credit card debt


For those who are tired of the heavy load of credit card debt, it is time to manage it in a way that will be feasible. Start by developing a payment strategy that works for your income and long-term financial goals. Look over your credit score and credit reports from credit bureaus Experian, TransUnion and Equifax. You can dispute any errors on the reports. Avoid applying for new credit because this causes a reduction in your credit score.

Getting debt relief

It is hard for some people to manage credit card debt by themselves, and this is where debt relief programs come in. They provide counseling on how to set and maintain a budget. You would also learn about the best ways to pay down debts and negotiate with creditors. Another form of debt relief is debt consolidation. With this option you consolidate bills into one monthly payment.

Avoiding multiple credit cards

Another way to manage debt is to not have multiple credit cards with high balances. When this happens it becomes almost impossible to pay down debts. Instead, those in debt should stick to one or two credit cards that have manageable balances which they can pay off easily. They should resist the temptation to get more credit than they need.

Negotiating credit card debt

Those who merely fell on tough financial times can contact creditors to negotiate for a better payment option. If they have paid their credit card bills on time over the past few months, it is possible to receive a lower interest rate. Those in debt can set up a different payment plan that is suitable for their current income levels.

Curbing excessive spending

It also helps to limit expenses when managing credit card debt. Those who are seeking to manage credit should pay for most items with cash and leave the credit card at home when going out. They can also swap items with friends and relatives to save money on things they need. Another idea is to shop using stores' weekly sales and look for ways to relax that do not involve spending.

Opening a savings account

Instead of taking out a personal loan to reduce credit card debt, families can open a savings account that will only be used for managing debt during emergencies such as a job loss or other financial hardship. They should contribute to this account every pay period until they accumulate enough to get through tough times.

Going beyond the minimum amount

Paying more than the minimum balance each month ensures that families have less credit card debt to deal with. When they only pay the minimum balance, they are paying mostly the interest on the card rather than the actual balance.

Automated bill pay

Credit card debt sometimes happens because people forget to pay bills on certain dates. This problem can be solved with automated bill pay. With this option the amount families owe is automatically deducted from their checking accounts.

When families manage credit card debt successfully, they are on their way to long-term financial freedom.


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