How to Get Out of Credit Card Debt
What is an Abnormal Amount of Credit Card Debt?
Getting a credit card is not always a bad thing. Some people operate with a few hundred dollars in credit card debt monthly. The adding and paying off of the credit card can improve your credit score because it shows financial reliability. However when it gets out of control is when you get into trouble. If you have more credit card debt than you do savings then you need to consider changing your financial situation and look for a way to get some Credit card debt settlement.
The fair number that is given by banks is 30 percent. You should never have more than 30 percent of debt compared to the amount of credit your bank gives you. So if your bank gives you a 4000 dollar credit card you should never put more than 1200 dollars of debt on that card at one time.
How to Avoid Credit Card Debt
Steps to Getting out of Credit Debt
- #1. Save up 1000 dollars
Start by making yourself an emergency fund. This is so that when daily life situations arise you are not having to add more to your credit card debt to fix them. So start by saving every penny possible from your paychecks to have at least 1000 sitting. This will be so that if your water heater goes out or your car breaks down you can afford to fix it.
Then every paycheck after that pay every extra penny that you have toward the credit card debt with the highest interest rate. Typically this is credit cards or bank cards that are given to help with medical expenses.
- #2. Get Help
- #3. Look at Your Options
Consolidation is the most common one. This is when they take all of your credit card problems and consolidate it all into one large payment. However this payment is likely less than all of your monthly payments combined. This is great for when you have multiple maxed out credit cards. One company that can help with this is https://consumercreditcardrelief.com/. They offer Credit card debt consolidation and all other services to help.Another option is to speak with your creditor company. They often times will offer you options to lower your payments. This can be simply just giving you more time to pay off your credit card. If you decide to consolidate be sure that you call to make the payment to pay the credit card off. This is because often times they will give you some money off for paying in full.If you are just barely over the 30 percent number you can also ask your credit card company if they will give you a little more credit. Likely if you have been making your payments on time and are reliable then they will. That little extra will help you get that number back under 30 percent and save your credit. Only do this option if you are planning on paying the credit card down quickly.
Another option if you find yourself completely buried in debt is bankruptcy. Help from the professionals at https://consumercreditcardrelief.com/ help you get through that. There are many benefits to filing bankruptcy. A lot of your debt will actually be erased. However, it takes a major major blow to your credit. You basically won’t be able to purchase a car on credit, or really anything on credit, for a very long time. Bankruptcy is worst case scenario.
- #4. Decide