subject: Credit Card Debt Payments - Why More Americans Are Seeking Debt Relief Help [print this page] Credit Card Debt Payments - Why More Americans Are Seeking Debt Relief Help
Consumers have understood it the hard way that credit card debt comes about because of bad cash flow. Whenever there is more money being spent than what is coming in you will end up in debt. There is only one way to end this stressful condition and that is to eliminate debt. Eliminating debt is a methodical and time taking process. Any commercial promising you to make your debts disappear is just trying to lure you.
It is important that you start spending less than what you earn. If it requires you to cut down some of your cost you must do it in order to get back the control of your financial life. Try to make extra money through part time jobs, overtime or other legal ways to increase your income.
Only when you have a positive cash flow will you be able to pay extra money towards your debts. If you are in the habit of paying only the minimum due amount every month then you will have to be in debt for a long time. The extra income can help you pay extra towards your debts to bring down the total balance.
Make a payment plan based on the interest rates charged by your credit card companies. Make a list of all your credit cards with the interest rate being charged and the minimum amount due. Now try to pay only the minimum due amount on all other cards and channelize all your money to pay off the debt with the highest interest rate. Once this debt is paid off, target the next debt with the highest interest rate. This sounds like hard work and it is but is a legal and effective way of coming out 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.
