Home | Submit Articles | Contact Us

Ways to Trim Your Credit Card Debt

Now there is a free online tool to help measure your spending with others... use this online form to see where your money goes each month, and gauge it with how others across the nation are spending their hard-earned dough:
Money.CNN.com

There are also about two dozen money topics at this website of vital interest to anyone who is seeking to improve his or her finances. Great website!

Yes, it's true. You personally have too much credit card debt and its about to drive you crazy. It's affecting your sleep. You've lost your appetite and you worry all the time.

Well there IS hope, so don't file those bankruptcy papers just yet. One major thing you have to keep in mind is this: your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment.

So here are a couple points to help you deal with your credit card debt.

The first thing you have to do is simply contact your creditor and let them know your situation. Ask for a lower interest rate or a repayment plan.

Don't expect magic. With credit laws tightening since enactment of the new bankruptcy laws since Oct. 2005, we've noticed that lenders are less helpful getting you out of debt than they are in getting you INTO debt!

But contact them anyway, it's your best first step. You might not have thought of it because you're just naturally so polite but its a very good strategy to be courteous at all times when negotiating with your creditor. Be polite, but firm. Come across as one who knows what you're asking for and expect to get it.

Never threaten to quit paying your debt if you don't get your way -- say, a lower interest rate. Instead, explain that you'd be able to better pay your bills on time if the billing cycle was in synch with your paydays. We've known many lenders who will gladly adjust billing dates to better serve you. They want to be paid on time. Resetting the due date is simple.

If you're not sure what you're asking for in the first place you might consider a reputable credit counseling service. There's a lot of great, honest organizations out there whose mission is to help you work things out with your creditors. There are also a lot of lousy ones.

It's best to check out al your options and not jump into bed with one too quickly. The Federal Trade Commission has put together important information on what to expect and what to demand of a credit counseling busines... as well as what you need to be wary of. In that business, the term "Buyer Beware" is very real.

Next you need to stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them out of your wallet or purse, do it! You simply can't keep adding to the problem by running the debt up any higher.

Experts point out that this is actually one of the hardest parts of cutting credit card debt. Its like you're addicted to spending money you don't have. So go cold turkey and drop the spending habit.

Begin slicing away at debt. Start paying the card balances with the highest interest rate first and work from there.

How do you do that? Concentrate on those high interest rate cards by paying more than the minimum balance each month. The minimum is just designed to keep you on the hook longer anyway. The credit card companies are in this business to make a profit and want to have you paying them for years to come.

Paying just even a little extra each month makes a big difference in the long run.

Lastly, keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card debt by following the common sense steps outlined above. You can do it too. Good luck.

Contributors to this article:
http://wiki.ehow.com, and
Steve Johnson, fixyourcreditreport.blogspot.com

Return to Homepage

Home | Submit Articles | Contact Us