There are quite a few people around who like to view credit card debt as just another monthly payment. However, at the same time it’s a fact that too much credit card debt can have rather serious consequences. Don’t be complacent with the idea that you’re paying the minimum balance every month, for in spite of that there are high chances of your debt to income ratio climbing higher. This could finally result in higher rates as far as mortgages, auto loans and other types of loans are concerned. Plus there are other types of credits you might require with time and in such a case having huge amounts of credit card debt definitely won’t help.
Getting yourself out of the credit card debt mess
Here are a few strategies you might like to consider if you wish to extricate yourself from the credit card debt mess –
- Get down to calculations: The first thing you should take care to do is get down to calculations and that means listing down what and how much your credit card debt is actually like. Don’t make the mistake of ignoring your debt problems instead of addressing them. Understand this for a fact that eliminating debt definitely requires that you tackle your credit card debt problem up front. Gather all your monthly statements and calculate your total debt.
- Decide on your disposable income: After this you need to decide on your disposable income. Fact remains that when you’re looking to completely eliminate debt, then disposable cash happens to be essential. Now it doesn’t necessarily have to be an exorbitant amount. However, yes it should be something to begin with.
- Do away with your cards: Generally most people find it a difficult task to actually stop using their credit cards. Herein the problem happens to be self-control and if this is also the case with you. Do away with your credit cards either by cutting them up or destroying them. However, don’t make the mistake of closing your credit accounts for that’d have a negative impact on your credit score for sure.
- Try generating extra money: Another very important step you could take towards getting rid of your credit card debt is to generate extra money. Living from one paycheck to another isn’t really a very healthy idea and this is why generating extra income could work wonders. You could obviously pick and choose the most convenient option as per your circumstances when it comes to earning extra money.
- Ask for a reduction in interest rates: Finally a very important thing you could do is to contact your credit card companies and ask for a slash in the rates of interest. If you’ve got a good payment history, then this could perhaps help you out. You should also get credit news everyday, so that you know what the present conditions are like.
Working on the 5 key strategies discussed above should help you tackle the credit card debt problem easily enough. All the best!