Credit Debt Help - Tips to Bundle Then Eliminate Credit Card Debts
Credit Debt Help - Tips to Bundle Then Eliminate Credit Card Debts
Credit cards are beneficial in building up ones credit history. A good credit rating goes a long way in getting loans for car, house mortgage, and getting other financings. However, trouble starts when people cannot control their spending habits and they start using their credit cards unnecessarily. This can lead to huge debts which can take years to pay off. If you want to pay off your debt this article can give you a few tips on the same.
1. Get a free copy of your credit report and calculate the total debt that you owe to different creditors. Review your credit statements to find the total amount that you owe now. Add the total amount of each creditor and you will know how much you owe in debt today.
2. In order to get rid of debts you need to channel all your disposable income towards your debt payment. For this you will need to have a personal budget. Make a list of all your monthly expenses like housing, transportation, food and other items. This amount needs to be subtracted from the monthly income. The remaining money can be then used for paying off debt.
3. A part time job or any kind of additional employment will help you increase the disposable income which you can use towards debt payment.
4. It is possible to negotiate a reduced interest rate with the credit card companies. The chance of getting a reduced interest rate becomes higher if you have been a good customer and you have a good payment history. It is possible to get an interest rate reduction of 2% to 3%.
5. Debt relief methods like consolidating debt and negotiating debt can help in getting rid of debt.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.