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In these tough economic times, many consumers have found credit card debt catching up with them despite their best efforts to pay down their debts. For some people it’s hard to pay more than the minimum each month, or to make payments on time. In these cases, the accumulating interest, late fees, and possibly even over-the-limit fees all add up on top of the principle balance, causing them to sink further into debt. Even those who previously kept their card balances low may have found it necessary to rely on their credit cards to pay for groceries, utilities, gas, and other basic living expenses. As credit card balances swell, so does the stress. Some even struggle to keep up with their minimum monthly payments, especially if trying to pay several different cards.
Consumers seeking credit card debt solutions have various options, from balance transfers and debt consolidation loans, to professional help from a debt relief company if the problem feels too overwhelming to overcome on their own.
You might be able to tackle the problem yourself using the self-help tactics in Step One. If that plan of action isn’t sufficient, consider the suggestions in Step Two and Three, depending on the severity of your credit card debt.
If you’re still able to make credit card payments, but are concerned that the balance is spiraling out of control, check the interest rates on all your credit cards and try to pay down the one with the highest interest rate first. See if you can:
If the credit card debt solutions in Step One aren’t enough to handle your debt, other options include:
If none of these approaches suit your needs and you are still struggling to meet minimum monthly credit card payments, consider seeking a credit card debt solution with a reputable debt relief company that offers solutions such as a Debt Management Plan or a Debt Settlement Plan. One of these plans could be a viable option for a consumer who is struggling with credit card debt and has a source of income, two or more credit card accounts, and owes at least $2,500 in unsecured debt. Here’s a basic overview of the two options:
Whatever credit card debt solution you choose, it’s vital to check the credentials of any debt relief company you work with, so as not to make a bad situation worse. If you’re considering a Debt Management Plan or Debt Settlement Plan, consult a reputable provider who offers multiple credit card debt solutions, not just one type of plan. That way they can assess your situation and help you choose which option is best for your situation.
There is no magic credit card debt solution to resolve debts overnight. But with dedicated effort, you can soon be working your way toward a safer financial future.
The CareOne Debt Consolidation Guide provides more details on how a Debt Management Plan or Debt Settlement Plan works for those seeking a credit card debt solution.
When it’s so easy to whip out a credit card every time you want to buy something, it’s no wonder so many Americans are in debt. In fact, according to Creditcards.com, the average credit card debt per household with credit card debt is approximately $15,000. Add in high interest rates on owed balances of around 14%, and consumers often find themselves struggling just to make minimum monthly payments, let alone pay down any principal.
If you believe the credit card commercials, you're not going to be able to have any fun in life unless you use their card. Well, if you've ever carried a balance on your credit cards, you know that paying interest is no fun at all. Tack on a late fee or over-the-limit fee and the good times are really over. Although credit cards can provide immediate gratification, they're more likely to cause long-term stress in your life. Thankfully, there are alternative strategies for living life without credit cards.
Ten tough questions to ask to see if you are ready to make the commitment to getting out of credit card debt once and for all.
For some people, understanding how to negotiate credit card debt may be a great first step for getting their finances back in order. You’ll have to contact your credit card company and know who to approach, what terms to ask for, and where to go if you need more help.
Are you only paying the minimum payment each month? If you increased your payment amount every month by as little as $10, you could pay down your debt much faster.
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