04 Feb A few reasons why you’re still paying credit card debt
Credit Card debt can be a huge financial burden on your finances. For some, credit cards can give consumers the illusion of having extra money that can be factored in to their income. This couldn’t be the furthest thing from the truth. Using credit cards as an alternative to cash can give a false sense of security and ca
use consumers to spend more because you don’t actually see the cash leaving your wallet. The credit card debt trap can be dangerous because the more you spend the further you go into debt. Ultimately, you would be paying more in the end because of fees and interest. If you pay the minimum balance, you could end up with monthly payments for longer than you intended and paying back an amount that is much higher than the original amount borrowed. If, in addition to paying the minimum, you pay late, then there are other fees that are assessed that could make it nearly impossible to catch up. Of course, credit card companies would love nothing more than to have you pay the minimum payments. After all, the longer you pay them, the more money they make. The pressure of having too much debt can lead to other problems unrelated to your finances. Excessive debt can lead to high levels of stress which can ultimately lead to depression and affect other issues in your life such as your health.
Credit card debt relief is an option that many consumers turn to to help relieve the pressure of excessive debt. Credit card debt consolidation can help to combine multiple cards into one monthly payment. Solutions such as these can often help reduce the amount of interest paid on the credit cards and allow you the ability to pay back the debt much faster. With credit card debt forgiveness or credit card debt settlement, credit card companies are more likely to reduce the balance owed or eliminate it all together. There are reasons you still find yourself burdened with credit card debt and we will explore them here and look at ways to properly manage the debt.
Overspending is a trap that many consumers find themselves in. We find that when our income isn’t enough to make ends meet, we turn to the alternative of using credit cards to compensate for the shortfall of income. While credit cards give you more spending power, it can lead to indiscriminate spending that consumers really can’t afford. The ability to buy now and pay later can be very enticing and can lead to spending more than normal. Cash, on the other hand, is more exact. Once the cash is gone, that’s it and the spending stops. Being disciplined with credit cards is key to controlling spending. If you find yourself in the trap of excessive debt, credit card debt relief is a solution that can be utilized. Other options could include credit card debt consolidation or credit card debt settlement. These options would be extremely beneficial especially if you have multiple credit cards that are near or above the credit limits.
Making the minimum monthly payments is the quickest way to stay in debt. With the minimum payments, only a small amount of the payment goes towards the principle balance. The majority of the payments that are made go towards the interest. Making the minimum payment is only effective if you don’t make any other purchases with the card. If you are using a card on a regular basis to make recurring payments, paying the minimum amount will have very little, if any, effect on the overall balance. Many credit card debt relief companies suggest that you always make more than the minimum payment to reduce the balance. Consumer credit card debt relief recommends doubling or even tripling your monthly payments to reduce interest costs. Making bigger payments can also save your credit score by reducing your debt utilization percentage.
Transfer the balance
When you transfer the balance from one card to another credit card, the purpose is to transfer to a card with 0% interest. By eliminating the interest you are able to pay down the balance of the credit card at a much faster rate. While this is not an official method for credit card debt relief, it is a method that allows you to reduce your credit card debt over a shorter period of time. It’s important to keep in mind that all major credit card companies do allow balance transfers from card to card, however, if you’re looking to transfer a balance from one card to another card within the same company, you won’t be able to make the transfer. Debt transfer not only works with credit cards. You can transfer debts from car loans, payday loans or even student loans. This form of credit card debt relief is most effective if your plan is to pay the cards off without continual use of the card. A balance transfer will require a credit check, therefore, if your credit is not good this option may not be available.
Pay off one card at a time
When all else fails, you can concentrate on paying off one card at a time. This method could be considered an effective form of credit card debt relief because you are eliminating the debt card by card. While making the minimum payments of your other cards, you would pick a card that you want to pay off and make double or triple payments to pay it off. You could select a card that has the lowest balance or a card that has the highest interest rate. Focus on the card by making multiple payments within a billing cycle. Once you have paid off that card, then work on the next card. Repeat this until all of your credit cards are completely paid in full. This method would take more time, but will ultimately get you out of the credit trap. The key to this option is to avoid making any new charges on your cards while you execute this plan.
As you can see, credit card debt relief can be achieved in many different ways. From credit card debt forgiveness to credit card debt consolidation, there are many effective ways to reduce your credit card debt. The key here is to come up with a plan, execute the plan and stick with the plan. Consumer credit card relief is an organization that can provide you with many options to manage and even eliminate debt completely. They will help consolidate your credit card debt by providing a comprehensive review of your budget and analyzing your debts. Once they have analyzed your overall card debt and income, they will recommend a relief program that is right for you. They will also recommend ways to help you increase your income to help further lighten the load. With their process, the ultimate goal is relieve the financial burden associated with excessive debt. CCCR offers programs that can help you eliminate your credit card debts fast and offer services to individuals as well as companies. Their experienced counselors can help you come up with a realistic budget that is sure to help you succeed with your debt elimination. Visit their website today to get more information of their extensive services, calculate your debt using their debt calculator or fill out your application for a free quote. Their agents are standing by waiting to help you relieve your credit card burdens once and for all.