Reduce Credit Card Debts – Debt Consolidation Vs. Debt Negotiation Programs

You need to reduce your credit card debt in order to get your finances under control

. This can be a tricky thing. It is easy to let credit card debt consume you. You can get caught in the middle of an ugly cycle of bills that is hard to get out of.

It's time to get back in control. Take a look at your purchases. What are you buying? Are you making purchases you cannot afford to pay cash for? If this what you are doing, you need to take action to reduce your credit card debt. If you are buying luxury or unnecessary items, it's time to stop this behavior. Over spending is not a good practice. When you run up your bills on unnecessary items, you will be paying for them for years to come.

If you need to make a credit card purchase to carry you until your next paycheck, make sure you can pay the balance off the following month. Doing this will ensure that you are not living beyond your financial means. If you go out and buy a TV that will take you a year to pay off, that purchase should not be made. I know it is extremely tempting, especially if you credit limit is high - but this is how your creditors lure you in. You make a large unnecessary purchase, and then it takes years to pay off because you are paying the minimum payment. In the end, you pay more in interest than the cost of the TV. The creditor comes out on top and you are still left with the bill.

Another way to reduce your credit card debt is with the help of a professional that is trained in debt relief. They can analyze your balances and make a determination on the best way to eliminate your debts. Most professionals will suggest negotiation and settlement or consolidation.

Negotiation and settlement is when you (or someone you hire to act on your behalf) contact your creditors and ask for an extended repayment period, reduced interest rate, or reduced principal balance. When negotiations go successful and a settled amount is agreed, your overall debt and monthly payments are significantly reduced. This reduction can be up to 60%.

Consolidation is when you roll your credit card debts together and take out an installment loan to pay them off. Doing this allows you to have a lower monthly payment than the sum of your credit card minimums. Also, since it is an installment loan, it comes with an end date. Similar to an auto loan, once you make your last payment the debt is paid off.

No matter which solution you choose, begin to eliminate your debts now.

Reduce Credit Card Debts Debt Consolidation Vs. Debt Negotiation Programs

By: Channing Blaine

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