What Is Credit Card Debt?
Credit card debt is something that many people will struggle with. It is estimated that approximately 37 percent of people have some form of debt that comes from a credit card. For a lot of people, this debt will hold them back from a lot of financial plans. There are a lot of things that your credit score plays a part in. Without a good credit score, you won’t be able to purchase a nice home or get any other type of car loan.
When people get their first credit card, they can get a little excited and tend to overspend. For some people, this is a one-time thing. While others just continue to spend and only make the minimum payments. This type of behavior is what will lead to debt. Although if you have already incurred this debt, then the only thing you can do is to pay it off. There are a few ways that you can get rid of it. You can pay off credit cards, look into credit card consolidation, or you could get consider getting a lower credit card interest rate. That is just to name a few. If you are struggling with this debt, then here is what you should do to get it under control.
Lower Credit Card Interest Rates
One of the first things that you should do when you are trying to get rid of your debt would be to lower the interest rate on your cards. Credit cards are notorious for having super-high interest rates. This rate can end up holding you back and making it nearly impossible to pay off your credit card. Luckily, there is a way that you can lower these interest rates. Certain accounts will lower your interest rate for a designated amount of time. This will keep your interest from accumulating and you will be able to pay off your debt much quicker.
To lower your interest rate, the first thing that you need to do is evaluate your situation. You will want to know your credit card terms, which would include your current interest rate, balance, due date, and grace period. It is also important that you know your credit score.
After you have looked at your credit score, you will have to decide if it is good enough to use as leverage, or if you should try to improve it. If your credit isn’t that great, then the company is not going to be very willing to give you a better interest rate. Some ways to quickly improve your credit score would be to only utilize 30% of your credit limit and pay off credit cards. This shows creditors that you are trustworthy and will get their money back on time.
Next, you will want to look at what other credit card companies have to offer. This will allow you to get a good idea of what normal interest rates are. You can then use this information to be better prepared when the time comes to call your credit card company. It is also a good idea to consider the company’s perspective. If you consider their perspective and reasoning, then you will be able to communicate much more effectively.
Once you have lowered your debt as much as you can, reduced your interest rate, and done your research, now it is time to call your credit card company. Sit down with all of your information, call, and simply ask them to lower your interest rate. This phone call shouldn’t take more than an hour as long as you have all of the information that you need in front of you. Don’t be afraid to negotiate, as long as your point is valid.
Consolidate Your Debt
If you have multiple types of debt, you may want to consider consolidating it. This one of the most common things that people do when it comes to credit card debt relief. When you consolidate your credit card debt, you essentially take out one loan to pay off all of your other debts. That way you only have to worry about one payment. There are numerous different companies that offer credit card consolidation. One of the most well-known would be the CCCR which is the Consumer Credit Card Relief. This credit card debt relief service will help you with every step along the way. If you are looking to consolidate your debt, you can get a quote on their website in less than 10 minutes. While this is a good idea, you should try to pay off credit cards before you go through with consolidation.
Pay Off Your Debt
Once you have lower your interest rate and finished the credit card consolidation process, then it is time to pay off your debt. The first thing you should do is to look at your debt and develop a budget. You will want to figure out where you can cut back your spending, then put that money toward your bills. After you have developed a budget and decided how much you can afford to pay every month, you should start paying off the debt that is the most expensive. Ideally, you will want to pay over the minimum amount whenever you can.
While you are trying to pay off your debt, it would be wise to put a halt on credit card spending. If you are trying to pay your credit card off but continue to see the balance go up, it can be discouraging. You should also make sure that you won’t accidentally charge your credit charge. So, go through your online shopping accounts and delete your card information off of those.
You should also make sure that you are putting any surprise cash towards your debt. If you get money for Christmas or a yearly bonus, make sure you put it toward your debt. It might not be the most glamorous thing that you can do with it. However, it will be well worth it when your credit card is paid off. You can also sell unused items and put that money toward your debt as well.
Do Not Get Discourage
Paying off debt can be frustrating and discouraging. You need to make sure you do not get overwhelmed and end up giving up. It is crucial that you are still maintaining your physical and mental health while you are along this journey. So, don’t cut out things like exercise or therapy. You may even want to reward yourself when you reach certain milestones. For every 100 dollars, that you pay toward your debt, you can go get dinner or something else you enjoy. Just make sure that you are budgeting for these rewards.
Give Consumer Credit Card Relief a call today to begin your path to Credit Card Debt Relief!