Get your credit card debt paid off before it takes over your financial health.

The first step is to be true and honest with yourself about your debt and how much you have. If you are purchasing more than what you are making, then you need to stop. Do not add anymore to your debt. Cash needs to be used rather than credit cards. If you do not have the cash for your purchase then do not buy it.

The next step is to start paying off the credit cards. Start by paying off the card with the highest interest rate first. Each month pay the minimum on all the cards except that one.

Pay that one credit card’s minimum plus any additional amount that you can. When you finish paying off that highest interest rate card, then move on to the next highest interest rate.

Keep doing this until you have paid them all off one at a time. This will take some time and commitment but it can and will be done.

One other step you can take is lowering the interest rate on your current credit cards. Many times all it takes is a phone call to the creditor and the rate will be lowered just by asking.

You can also try to transfer balances from one card with a high interest rate to one with a lower or zero interest rate. This will save you money all around.

If you are honest with yourself, set a budget and make a commitment to paying off your credit card debt, it can easily and successfully be done.

Sebastian

Paul Sarwana asked:




Credit card debt affects more people than you know. Just about everyone you talk to has at least 2 credit cards tucked away on their wallet. With the way the economy is today it is no wonder that people are finding it harder and harder to pay these credit card bills. Credit card bills are usually the last to get paid and they are the ones that go up the fastest. With finance fees, late fees and over the limit fees, your bill can easily go up by $100 per month if you are far enough behind.

Most people feel that there is no way out of this and therefore they ignore the bills. This can be very harmful to their credit and will haunt them for a lifetime. Many people do not realize that they can most likely cut the credit card debt in half if they seek a credit card debt settlement. The trick is to know how to approach the credit card company to ask for this settlement.

You need to try to have some cash to work with. This will be helpful for when you call the credit card company and ask for a settlement. What you need to do is call and talk to a financial or collections person at the credit card company. Be very polite and tell them that you have x amount to offer them for a settlement. Most of the times they are able to offer you a certain discount.

Keep in mind that they have the ability to negotiate the amount of the settlement. They will start off by offering you the smallest break on the bill. Generally they can offer you at least 50% if not 70%. Most cards can offer a total of a 70% discount on the total of the bill if you are paying it off right away.

When you call you want to know what your total bill is and start off by offering them 70%. You can always negotiate up if they will not go for that low of an amount. Just be prepared to pay what you and the credit card company agrees on. This will save you a great deal on the debt so you will not have to pay the entire bill.

This will take the bad mark off of your credit or at least show that the debt was paid in full by you. It will show that it was a settlement but the key thing is that you paid it off in full regardless of the amount. If you find that you have credit card debts that are burying you, then you may want to consider calling them and seeing of you can do a credit card debt settlement.

Yvonne

One of the first keys to using credit wisely is to avoid any unnecessary debt by using cash as much as possible instead of bank cards. There could be a time in your life when you find yourself besieged with high debt and credit card bills. If this is your situation do not worry because there are proven steps to get you out of credit card debt.

Stop using your bank cards for your purchases. One of the first steps you will need to take is to stop using these altogether. Immediately stop charging anything additional on credit cards. When you purchase items like gas and food with your credit card because it is convenient then your debt reduction increases. Your credit card isn’t a free gift card, so you do not want to treat it that way. You can begin with using your debit card or cash for small purchases like food and gas.

Many people find that they spend much less with this method. And if you can’t afford to put it on your debit card, you probably shouldn’t buy it. Pay with cash as often as you can. Destroy those credit card offers when they come in. Not seeking out new credit is one way to have debt reduction. When you decide to make a major purchase, save up and use cash. Create a budget and stick by it.

This may seem obvious, but one of the reasons your debt is out of control is that you keep adding to it. Debt elimination is when you stop using credit period. Don’t finance anything because the truth is that you can live without it. Cut up all of your credit cards right down to the last one. Don’t make any more excuses. It doesn’t matter that other personal finance sites say that you shouldn’t cut them up. Destroy all of them today. Stop rationalizing your need for them.

You don’t need plastic for anything. If you’re in any kind of debt, then credit cards are a trap. They will only put you deeper in debt. Later, when all your credit card debts are vanished and your finances are manageable, maybe then you can get just one credit card. The goal is to be debt free.

It is very necessary to find out exactly how much you owe on each credit card. You will want to pay more than the minimum payment in order to keep on top of your debt situation. Paying off the entire balance would be good. If you can’t pay off the entire balance, at least make a payment that is over and above the minimum that is due. Most of your minimum balance payment goes to interest and not principle. When you only pay the minimum you will never pay off the card or it will take years. Depending on the balance outstanding, add an extra fifty to a hundred dollars to the minimum in order to diminish the principal balance. As you are doing this, try and stay away from using your credit card.

Remember don’t just pay the minimum balance on your credit cards. If you have more than one credit card, focusing your hard work on paying off one card at a time while making minimum balance payments on the others is acceptable for now. When one card is paid off, make the same payments on another; do not use the extra money as spending money.

Something that you may want to consider is calling your credit card company and ask them for a lower interest rate. Believe it or not, this actually works sometimes because they would want you to continue paying whatever you can then to receive nothing at all.

If you are still having financial trouble paying your credit card debt then Contact your creditors. Contact your creditors quickly if you’re having trouble making ends meet. Explain to them why it’s difficult for you, and try to work out a tailored payment plan that will reduce your payments to a more manageable level based on your personal needs. It isn’t wise to wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.

Dealing with Debt Collectors can be very difficult. The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m. or after 9 p.m. They also may not call you while you’re at work if the collector knows that your employer doesn’t approve of the calls. Collectors are not allowed to harass you, lie, or use unfair practices when they try to collect a debt. They must honor a written request from you to stop further contact.

Consider Debt Consolidation as a way to pay off all of your credit card debt. You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit. You can also get a debt consolidation loan and have one easy small payment that will fit your budget.

Debt management plans are very beneficial. If your financial problems come from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP).

Brett

Isabel asked:


Say you earn 1000 and have to pay 1050 for your credit card debt. You have to rely on your credit cards ( again ) for those extra 50 and for your monthly expenses.
What should a person with this problem do?
Would it be ok to take a loan?

Finance gurus like David Bach say to pay the highest rate card first, but what should you do if you can’t?

Thanks ¡¡¡¡

Bailey

PhoenixMarketing asked:

Credit Card Debt is the most profitable commodity in the world. There are over three hundred million credit cards with an average limit of $3000 collecting 70% to 85% interest monthly. Credit Card Debt is the catalyst that is producing the economic struggle in America today. Credit Card companies have issued more credit than the average consumer can handle.

Zane

TheWarOnDebt asked:

www.debtwarriors.com What is your minimum monthly payment on your credit cards? Learn why this question can make the difference between you winning or losing your war on debt.

Sam

David Patullo asked:




During times like these, keeping up with bills is a major headache, especially since interest rates are soaring and prices are soaring as well. If you have credit card bills to pay, you may find that keeping up with payments will start getting more difficult the more that you use your credit cards. Here are some tips to achieve credit card debt reduction:

Stop using the card

Stop using all your cards and look at the interest rates that you have to pay on each. The interest rates are a big reason why you are finding it hard to keep up with bills payments. On top of your principal debt, they will charge you extra because you borrowed money to make purchases. Don’t fall deeper into the debt trap by stopping the activity on your card immediately.

Pay bills wisely

Paying bills wisely means paying more than the minimum amount due on the card. Paying the minimum only will only keep you in debt and stretching the amount of time they can continue charging you an interest. This also means paying bills on time. By paying bills on time you can avoid all the late charges that you will otherwise incur because of bad account management.

Consolidate

If you have many credit card debts, try to consolidate them under a bank program that will help you pay them off at a lower interest rate. The advantage of this is that you only need to pay one bill and will be able to manage your accounts better without hurting your credit score.

Ralph

Bryan Burbank asked:




Debt consolidation can help you to pay off your credit card debt. It is hard to deal with a?large amount of credit card debt but using a consolidation loan can be your best option to eliminate debt. When you get this type of loan it can help you because it will take all of your existing credit card debt and create one easy to deal with loan.

You can also benefit because with being able to make one low monthly payment you will also be saving money on interest. Most credit card companies charge a large amount of interest on there credit cards, s high as 30% in some cases. When you consolidate you can negotiate a rate on interest that is much lower, like 5-7%. This saves you a lot of money over the life of the loan.

You should never feel guilty or that it is your fault that you have too much debt because you are not alone. More and more people are finding it hard to manage and pay there debt and with the rising unemployment rate this number is going to keep rising. You need to take action so that you do not have to worry about your debt any longer.

Remember that there are millions of people just like yourself that are struggling with there debt. You can take advantage of getting a debt consolidation loan so that it is easier to manage your bills. Make sure that you shop around when applying for a loan so that you can get a low rate of interest.

Erica

MoneyTalksNews asked:

If you carry a balance on one or more credit cards, you’re not alone: according to the Federal Reserve, nearly half of American families do. And nearly half of American families also have some sort of bank savings accounts. If you have savings, should you use that money to pay off your credit cards?

Damon

sam asked:


I am going to let my house in California foreclose. I have about $28,000.00 in credit card debt. Should I file for bankruptcy? Should I just not pay my credit cards? Or should I continue to pay my credit cards? Is there a certain dollar amount of income you are allowed to make to be able to file for bankruptcy?

Evan