Let us begin with the high interest rate. These plastic cards are notorious for accumulating into a big amount in a fairly short amount of time – at least if you continue using it without any payments. If you are currently watching helplessly as your credit card debts are continually increasing, you need to get debt relief help and you need it fast. Even if you are paying the minimum amount stated on your bill, that will not get you anywhere. At the very least, you are only paying of 4% of your total balance. It will take you decades to complete your payments.
One debt relief option that you can benefit from is debt consolidation. It comes in two ways. You can opt to get debt consolidation loans that involves borrowing money that is big enough to pay off your credit card debts. Aim to get a low interest loan so that you get smaller monthly payments. By eliminating the high interest of the credit cards and the fees usually associated with it, you can lower your monthly payments even by half. You can also make steady monthly payments for a maximum of 5 years – since most personal loans are paid off by that time. Of course, the key is the low interest rate that can only be achieved with a good credit score or a collateral.
If you have neither, your other option is debt management. This involves getting the aid of a debt counselor who will review your debts and the finances you will use to pay it off. They will help you come up with a debt management plan that will be submitted to your creditors for negotiation. They will even negotiate to lower your interest rate and if they reach an agreement, that will help you make better progress on your debts.
But while the high interest rate is removed, another aspect that has to be eliminated is your irresponsible use of these cards. If you do not correct these mistakes, you may find yourself deep in credit card debt once more.
Getting rid of bad spending habits should be part of any debt relief program. You need to begin by knowing how much you can really afford to spend. Ideally, using a cash only policy will help you stay within your means. But if you have to use credit cards, make sure that you have the cash in your bank account to pay for the whole balance on the card once the bill comes in. The only way you can eliminate the high interest on your cards while continuing to use it is to pay for it once the billing statement comes in.
Read all the fine prints indicated in the card contract that you will receive after applying for a card. Or if you lost that contract, research or call the credit card company to learn about the fees and charges associated with every activity on your card. And if you know that you cannot control yourself, try not to bring your cards when you go out on regular buying trips. This is how you become a responsible card holder.