Managing Credit Card Debt

Managing credit card debt without losing your mind can be quite a challenge

. This is especially true these days, when finance companies are arbitrarily reducing credit limits, cancelling cards, imposing preposterous fees, and increasing interest rates, often without notice. The reason for the erratic actions of the finance companies is entirely due to the current downturn in the economy, with so many people losing their jobs and unable to pay their bills. The crash of the housing market also had a hand in the current unpredictable credit situation. If you have got a debt load at this time and are trying to reduce it, navigating the tricky new waters of modern recession finance can be quite an emotional roller coaster.

If you are in this situation, take heart. There IS a way of managing your credit card debt without going crazy. The name of the game is organization. First, you need to know exactly how much you owe, and to whom. Get out all your bills and arrange them in order of highest balance to lowest. Add up the totals of all the bills, then figure out determine the total of the minimum monthly payments. See if this total fits into your monthly budget. If it does, wonderful. If not, you can call your creditors and explain your situation. If you are unemployed or otherwise having financial hardships, your creditors may very well suspend your payments for a while, or at least reduce them, or reduce your interest rate. They do not want to see you go into bankruptcy any more than you do.

Next, take note of where your money is going each month. How much goes to household bills, how much to debt, and how much to discretionary items? Do you have a cash emergency fund? You should, because the more cash you have in reserve, the less you will need to rely on credit cards if emergencies come up. See if you can cut spending in any area, and then use that extra money to go toward managing credit card debt. You want to pay it all off as soon as possible, because the feeling of freedom is so liberating and wonderful. Being debt-free will also change your life in so many wonderful ways. Just remember, it all starts with organization. Do not ignore your bills or hide them and pretend they will go away. Face them fully, address them directly, and you will soon be among the ranks of the debt-free and delighted!

Patrick has been writing articles online for three years now. Besides writing about finance and consumer debt he also enjoys writing about seasonal holidays, such as Halloween.

Managing Credit Card Debt

By: Ethan Thomas

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