How to Get Out of Credit Card Debt Successfully
If you have been weighed down by credit card bills, there are ways that you can get out of it. For you to achieve the goal of having a debt free life, all you will need to have in place is a plan. We have put together ways that you will be able to achieve this in this article. The first thing that you can do is target just one card first. If you are carrying balances on multiple cards, it might take you a while before you are able to clear them all. This is why it is advisable that you set your financial goals into short and long-term ones so that you feel as though you are achieving something. You can first start dealing with the card with the highest interest rates before you go to the rest.
As the next tip, go back to your creditor and renegotiate the interest rates they gave you. The rates might actually get reduced and all you need to do is make that phone call to them. This request will need you to have a great credit score and if you make the payments on time, you will actually get the interest rates lowered. Transfering your balance to another card is the option that you have but this needs that you be extra cautious. The transfer will happen in such a way that if one of the cards has a higher interest rate than the other, you transfer the debt to the one with a lower rate. You must be careful to transfer the balance only if you are committed to pay off the debt.
Using a peer-to-peer lender is also another tip worth exploring. If you know you will have problems when it comes to paying the debt in full, the peer-to-peer lenders come in handy. Most of the credit cards charge a higher interest rate than the peer-to-peer lenders and their loans are still secure. Two minimum payments in a month could also allow you to be debt free if you are committed.
You will find that card issuers have their interest charged on a daily basis and this is why it is advisable that you pay sooner. Pay what you are required to pay on a minimum then keep up these payments after every two weeks. Keep doing this until the whole debt is paid off and you can easily keep track of the payments on your calendar. Track all your costs as well to keep the debt in check. There are fixed expenses like your utilities and mortgage payments as well as the variable ones that you must keep in check by putting them down on paper. Writing the expenses down will help you keep the debt in check as you will be staying on budget.