Managing Your Credit Card Debt
Millions of people are feeling the effect of credit card debt. Some have found themselves in the predicament due to spending freely while others have found credit cards the only way to pay their bills after becoming unemployed or seeing their income drop due to an economic downturn.
Regardless of the source of credit card debt, here are some ways to manage it:
- Cooperate with your credit card company by making timely payments. It does not take long for good credit to become bad credit when payments are missed or consistently late.
- Negotiate your interest rate as low as possible with your credit card company. First, call another credit card company to find out what benefits they would provide if you switched your balance to them. Explain that you do not want any teaser programs. Second, call your credit card company stating what benefits you have been offered by another company to switch. You may be surprised when your current company matches the offer!
- Consolidate your debt. While this is the easiest and quickest way to come out of debt, a consolidation program involves research to find a reputable debt consolidation organization. Buyers beware – companies that claim to be debt settlement experts can be riddled with fraud.
Celebrate good news. The American Bankers Association announced on July 7, 2010 that credit card debt hit an eight year low. More Americans are paying off their balances and putting higher amounts, up to 4%, into savings. You are in good company by reducing your credit card debt. There is no quick fix for credit card woes but it is possible to conquer the mountain of debt and attain financial freedom.
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