Getting Out of Credit Card Debt - It May Be Easier Than You Think
On an average, today an adult is carrying at least nine thousand dollars in unsecured debt
. Most of us carry multiple cards and hence it is difficult for us to keep a tab on how much has been spent on each card. It is easy to build up high amount of credit with all the cards put together. However, there are always ways of getting out of credit card debt. When you decide to get rid of this debt, the first thing you need to do is to stop using your card and channelize your entire fund towards debt repayment.
Each card charges you a different interest rate. You must identify the cards which are charging the highest rates. Then you can call up those creditors and ask them to reduce the interest rate to a lower rate. If they agree your monthly payments will come down and in the long run it will be easier for you to pay off your debts. In case they do not reduce the interest rate, then you can transfer the balance to the card which is charging you a lower interest rate.
Now you will need a payment plan to pay down the balance. If is generally recommended to pay down the cards with the lowest balance first. If there are more cards with similar balance amount then you must pay down the one with higher interest rate.
Consolidating credit card debts is also a useful method of getting out of credit card debt. Through this method you can take out one loan with a lower interest rate and pay off all these loans. This does not affect your credit rating however the duration of payment is increased. This method will give you the advantage of much lower monthly payments each month.
Getting Out of Credit Card Debt - It May Be Easier Than You Think