subject: Tips for Knocking Out Credit Card Debt [print this page] Tips for Knocking Out Credit Card Debt Tips for Knocking Out Credit Card Debt
While Christmas time is supposed to be a time filled with holiday cheer and season's greetings; it is also a time that many renters living in Grapevine, TX apartments begin to rack up the charges on their credit cards and go into debt, many Americans are now facing much more debt than they have in the past. While credit card reform has attempted to put into place some restrictions on the credit card industry in order to help the average American get a handle on their debt problems, there continues to be many who have been unable to do so. Needless to say, this Christmas season could continue to add to their debt problems and overall financial woes. If you are one of these Americans that will face the New Year with rising debt, here are a few basic tips to help you in getting out of debt.
Do Not Close Your Accounts
One of the most important things to make note of is that you should not close your credit card accounts before paying off the debt. As long as you still have an active account, you still have some negotiating power with your credit card companies. Also the older a credit account the more important it becomes to your credit score with the various agencies. Instead of closing your accounts try to consolidate some of your newer accounts with your older ones.
Try to Lower Your Interest Rates
At the onset of your process to pay off your credit card debt, you should first contact all of your credit card companies and try to lower your interest rates. There are several approaches you can take when contacting the credit card companies. You can do a little homework to see what interest rates your credit card company's competitors are offering and ask them to match those rates. You can also request that your rate be lowered if it is higher than the current market rate. You should also do some research to see what your credit card company is offering new customers as an introductory rate. None of these practices will guarantee that your credit card company will lower your rate, but it never hurts to ask.
Plan for Paying It Off
After you have made the decision to pay off your credit card debt, you then have to decide exactly how to go about accomplishing this task. Where should you start? Should you pay off the credit cards with the smallest debt first or start knocking out the larger balances? The best way to begin to knock out your credit card debt is to begin paying the balances on the cards with the higher interest rates. The cards with the higher interest rates are costing you more money so starting here makes sense.
Consolidate Your Cards
Another strategy for renters that live in Grapevine apartments and the surrounding areas, is to consolidate all of your credit card debt onto one card. This may be an excellent option if you have received a great rate offer for a card that will allow to transfer your balances. This will also mean that you can go from several monthly payments to different credit card companies every month, to one payment to only one company. If this option will work best for you, you will have to be sure not to let anything slide. In addition, you will want to make sure you are paying more than just your minimum payment in order to make an impact into the principal balance.
Be Patient
Paying off credit card debt can seem overwhelming especially when you consider that the average American household has over $11,000 in credit card debt according to a recent study by CardWeb.com. The trick to paying off credit card debt is to be consistent and diligent.
Seek assistance
There are several non-profit organizations that focus on assisting people understand their finances and develop a plan for getting out of debt. You should research to find these organizations, as well as others that may be located in your state, in order to get the most up-to-date information on the current laws and industry practices that will assist you in your process to become debt-free.
If you have made paying off your credit card debt one of your 2011 New Year's resolutions, you will want to have a good plan in place for accomplishing your goal. One way to help you get your budget under control is to save money on your rent. For information on how to save money on rent, read a UMoveFree review.
