4 Ways to Cut Credit Card Debt
Nick Vance Date: April 27th, 2018 8:00 AM
Are you challenged with excessive credit card debt? Don't despair! While credit card debt can feel difficult, it can be overcome with a little work and planning. You can act today, and achieve mastery over your finances!
Try these easy ways to reduce and eliminate your credit card debt:
1. Always pay more than the minimum. To avoid paying for what seems like forever, you must kick in more than the required payment.
· Look at how much you pay monthly that's going towards the interest. Only the amount beyond the interest payment is reducing your debt.
2. Negotiate with the credit card companies. Credit card companies, like everyone else, want to be paid.
· If you truly can't pay under your current terms, they may be willing to make some adjustments for your situation. Interest rates can be lowered and incurred penalties can be reduced or even removed.
· Although these companies are more likely to negotiate if you already have a history of paying late or not paying, it can't hurt to ask! You might be surprised what they're willing to do for you if you're proactive.
3. Find a lower interest card. There are a lot of credit cards out there. Moving your high interest rate balance to one of a lower interest rate can possibly save you a lot of money.
· Also, you can call your credit card company and tell them you're looking to move your balance to a lower rate card; they might just reduce your interest and save you the trouble.
· If you do decide to move your balance, be sure to read the fine print. Sometimes those lower rates are just temporary.
4. Home equity can help. If you're a homeowner with equity in your house, you can use a home equity loan to pay your credit cards. The interest you're paying is even tax-deductible in most cases.
· Ensure the payments will be manageable for your situation. Home equity loans can get expensive quickly! Plus, your home is your collateral with a home equity loan, so if you don't make your payments, you could lose your home to foreclosure.
Whatever strategy you use, avoid the common mistake of running up the balance on your credit cards again. Then you'll potentially have a loan and a credit card balance to deal with. Cut up those cards you don't need (yes, literally!), and move forward with your life on a cash-only basis.
If you've got a lot of debt, avoid waiting for things to get even more challenging. Pick the best idea for your situation and charge full-speed ahead. Imagine how much better you'll feel when that credit card statement arrives in the mail, and the balance owed reads $0.00!
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