This article was written by Alban. Alban is a personal finance writer who provides tips on how to reduce debt and choose the best low interest credit card.
Getting out of credit card debt is not an impossible task. With a bit of work and a lot of determination it is possible to free yourself from card debt for life.
The simple steps listed here are an excellent way to clear your balance and adjust your budget so you stop spending more then you make.
Credit card debt can feel suffocating. Due to the way that interest and fees accrue on credit card bills it can seem like no matter how hard you work you will never be able to completely pay off your balance. This is most clear when you are struggling to make even the minimum payment each month or if you are unable to make regular payments. Usually people find themselves in credit card debt by accident. They spend on their cards, maybe just a little bit over what they should and get hit with interest charges that cause their balance to rise. Then they may have an unexpected large expense that they have to use their credit card to pay and before they know it the balance has reached an amount that they are simply unable to pay off.
This is why personal finance gets so complicated. People feel trapped in debt so they often give up and resign themselves to a lifetime of credit card bills. There is a better way. You can get out of credit card debt without winning a big money prize or living on canned beans for years. Just follow these three steps and you will be on your way to freedom from card debt.
Step One – Examine your debt.
Carefully look over all of your financial information. Figure out how much you owe and how much interest you are paying on each individual debt. Next, look at your household budget and how much money you bring in each month.
Your budget is a good place to start cutting costs. Are you able to stop spending on some things so that you can put more money toward your debt? By doing so you will spend less on interest and allow yourself to get out of debt faster.
Step Two – Contact your creditors and ask them to negotiate with you on your balances.
It is as important to them to have the bill paid off as it is to you so they will probably be willing to work with you. Depending on the lender and your situation you may be able to get interest rates reduced or waived along with other charges like annual or late fees. They may be willing to move your due date so that all of your bills are not due at the same time.
Step Three – If you are unable to get enough assistance through your credit card companies you may want to look at a consolidation.
One way to do this is through a balance transfer. These are special offers that allow you to move the balance of your old cards to a new credit card for a lower interest rate. This gives you more money to put toward paying off your debt.
Keep in mind that there are no easy ways to deal with your personal finance when you are in credit card debt. But, it is possible to get out of debt by controlling your spending and looking for special deals. Once you have freed yourself from credit card debt work hard to make sure you do not make the same financial mistakes again.