STRATEGIES FOR ELIMINATING CREDIT CARD DEBT
Credit card debt can feel like a massive burden for many Americans, impacting financial stability as well as future fiscal planning such as for retirement.
However, all hope is not lost! With strategic planning and controlled financial habits, it is possible to eliminate credit card debt and retake control of your finances.
Strategies
Create a Budget and Stick to It
Track and record your monthly expenses: Start this process by scrutinizing your current spending. This is vital as it will help you understand where your money goes each month, thus allowing you to identify where you possibly can cut back.
Next, write down a list of your needs and expense priorities: Determine what amount of funds is required monthly for essential living expenses such as housing whether mortgage or rent, utilities, food and medical expenses first.
Finally, set aside any money remaining for repayment towards your credit card debt.
Consider the “Debt Interest Rate Method.”
Put your credit card debt into order of their respective Interest Rate: Rather than focusing on the amount owed and the balance size, make the credit cards with the highest Annual Percentage Rate (“APR”) and pay off those with the highest interest rates. This methodology will save you interest payments in the long run.
Minimum Payments on Credit Card Debt
Do whatever you can to pay the minimums on all cards. In order to avoid a default or negative credit report, make the minimum payment at the very least.
Create a Budget and Stick to It
Track and record your monthly expenses: Start this process by scrutinizing your current spending. This is vital as it will help you understand where your money goes each month, thus allowing you to identify where you possibly can cut back.
Next, write down a list of your needs and expense priorities: Determine what amount of funds is required monthly for essential living expenses such as housing whether mortgage or rent, utilities, food and medical expenses first.
Finally, set aside any money remaining for repayment towards your credit card debt.
Negotiate
Negotiate directly with the Credit Card issuer to lower your Annual Percentage Rate:
Contact your Creditors: Reach out to your credit card companies and issuers to negotiate lower interest rates. Explain your hardship and demonstrate a commitment to paying down the debt. One may be surprised to learn that these types of calls can really help.
Also, when speaking with your consider asking about consolidating your credit card debts into a single lower-interest loan or balance transfer credit card.
Raise Additional Income
Explore additional sources of Income: Look for a second job or a part-time gig to boost your income. Consider freelancing, or selling unused items online.
Direct Extra Income to Debt: Use any additional earnings solely for debt repayment to accelerate your progress
Seek Professional Help if Needed
Debt Settlement: Consider hiring a trained Credit Card Debt Settlement Attorney to negotiate or litigate your credit card debt in order to reach a settlement.
A Settlement involves lowing the principal when applicable and putting you into a FIXED monthly payment that does not accrue interest or legal fees.
Check your Credit for Milestones
Check your three (3) credit reports for accuracy and that the reporting of credit card debt paid off is there and accurate.
Learn more about Finance and Credit Card Debt
Go to a local library and take out books or DVDs on budgeting and saving as well as tools for paying off credit card debt. Knowledge is power! Incorporate little lessons into your financial budget.
Conclusion
Paying down credit card debt requires a clear and disciplined strategy. Creating a budget, that differentiates between your NEEDS versus your WANTS will go a long way to freeing up cash to make minimum payments and decrease principal.
Use operative debt repayment methods like the snowball or ordering of most interest APR to least. Explore other opportunities to increase income. Speak with a qualified law firm and attorney that specialize in settling and defending against credit card debt lawsuits and collections.
With sheer grit, determination and planning, you CAN achieve fiscal freedom and fee calmer.
GOOD LUCK AND REMEMBER TO EMBRACE THE JOURNEY. YOU WILL GET TO THE FINISH LINE.
