Top 5 Tips For Paying Off Credit Card Debt |
By Laura Gutmann on March 23, 2010
Have you found yourself in trouble as mounting credit card bills grow? Many consumers find themselves stuck, unable to pay their balance as interest charges and other fees add to what they owe. Here are a few ideas to help you get back on your feet:
1. Stop using your credit cards immediately.
- If you continue to pile on debt, your interest charges will grow. Think about it this way – owing 15% interest on $100 is only fifteen bucks. But owing 15% interest on $1000 will cost you an extra $150. There’s a big difference.
- Cut your credit cards up or hide them if you find them to be too tempting.
2. Consider transferring your balance to a card with a lower interest rate.
- If you think you can save enough to pay off what you owe, but just need a little more time, it may be worthwhile to transfer your balance to a new card with a lower interest rate. That way, you won’t build up new fees while you save.
- Some credit card companies offer interest rates as low as 0% for a limited time – usually six months.
3. Make sure you are paying the minimum amount required every month, at the very least.
- Try to pay even more than that if you can. That will help you get ahead, especially as you begin to pay your balance down.
- Paying the minimum amount will avoid late fees and other charges – although you may still accumulate interest on the remaining balance.
4. Make a concrete plan for payoff, and stick to it.
- Stay organized. Keep all communication from credit card companies in one place, especially if you are juggling multiple cards.
- Calculate how much it will take each month to work towards paying off your debt. Work that into your budget.
5. If you are in serious debt, consider consulting with your financial advisor or seeking professional assistance from a reputable source of information.
- Get help before your situation spirals even more out of control.
- Make sure you explore all your options before you take drastic steps like declaring bankruptcy.
Other Resources:
eHow: How to Reduce Credit Card Debt |
Current Rating: 0 (0 ratings)