Get Over Credit Card Debts
Credit card debt has become a major problem facing our economy today. If you’re one of the millions of consumers suffering from major credit card debt, then you’re probably desperate to get your massive bills under control.
While the options seem limited and it can be easy to let credit card debt take over your life - don’t let it! there are ways that you can control your debt and pay it down - without asking your boss for a 50% pay raise! Here are the best tips for credit card debt consolidation:
* Put down the credit card: It may seem like common sense, but if you’re still charging purchases, you will never escape your credit card debt.
* Cut down on luxuries: Do you eat out for lunch everyday? Do you absolutely have to have that four dollar latte every morning?Try bringing your own coffee to work, or make lunch at home. The peace of mind you’ll have once your debt is gone will definitely be worth it.
* Look into a balance transfer: When you carry over a balance on your card month after month, your interest rate skyrockets, which puts even more pressure on your wallet. Consider a balance transfer to a low interest rate credit card, which will help save you hundreds of dollars in interest; not to mention make it much easier to pay down your credit card debt.
A balance transfer is a viable option for many individuals, but a warning about low interest rate cards: make sure that you’re not buying into an introductory offer.
* Try consolidation loans: Many banks will offer you private debt consolidation loans to help you pay off that credit card debt. But make sure you’re not charging anything to your cards while paying off the consolidation loans, as you’ll just be digging a deeper financial hole.
* Make extra payments: Many people pay only the minimum payments on their credit cards, but this prolongs the life of your debt. Pay more than the minimum payment, or if you can, make small extra payments throughout the month.
Here’s another tip for making extra payments: use the money you previously spent on unnecessary luxuries towards your credit card debt. If you budget your monthly expenses based on what you need - not what you want - you’ll find the money to make those extra payments.
* Dip into your savings account: This suggestion may seem a little shocking, but if you’re drowning in credit card debt, it’s worth dipping into your savings to alleviate the debt.
* Borrow against your life insurance policy: If your life insurance has cash value, borrow against the policy. However, make sure you pay back the loan, as any leftover debt will paid off by using part of your policy.
* Get a home equity loan: If you’re a homeowner, and have accumulated equity over the years, consider a home equity loan (HEL) in the amount needed to pay off your credit card debt. Home equity loans often have lower interest rates than those of credit cards, so you’ll be trading off your debt at 18% interest rate for one at 6%.
But before you take out a home equity loan, make sure you’ve learned your lesson regarding credit card debt.
* Talk to the credit card companies: If it seems like you’ve tried everything to get your debt under control, with no success, try taking your case to the credit card companies. Let your creditors know your situation.The last thing credit card companies want to lose is their money, so they’ll often renegotiate your interest rates and debt balance in order to protect their assets.
* Go to credit counseling: Credit counselors are often a great resource for consumers looking to reduce their credit card debt, as they can help cut down your debt balance by more than half.
Just follow these tips, and you’ll be debt-free in no time.