The Best Way To Consolidate Credit Card Debt
There are several ways to and to regain control of your finances. It is up to you to decide whether you want to do it on your own or with the help of a professional company. In either case, there are some basic guidelines that you must follow. The following steps will help you keep your debt under control.
Say NO To Credit Cards
If you are serious about getting out of debt, the first thing you have to do is to avoid using credit cards. If you continue using the same, you will end up accumulating more debt. Therefore, it will be a nice idea to hide all those credit cards at a place and forget about it. Get into the habit of using cash for your purchases. It will keep you up-to-date with your actual financial position. When you use cash, you will not be able to spend more than you need because it will keep showing you a clear picture on where exactly you stand financially.
Find Out The Details Of How Much You Owe On Which Credit Card
In order to consolidate credit card debt, you must have a clear picture on how much you owe to which creditor. Find out how much is the total amount that you need to pay every month. Make sure you prepare a list in such a way that the card with the highest balances and with the highest rates comes at the top.
Contact The Creditor
Give a phone call to your credit card company and inform them about the financial crisis that you are going through. The idea is to convince the company that your problem is genuine and that you are still willing to repay the debts. Request them to lower the rate of interest so that you can repay the balances easily. Always remember, creditors only want their money back. They will be the saddest people if you go bankrupt. Therefore, if you are persistent in your request, the chances are that they will agree to make things a little more favorable to you.
Ask The Company If They Can Help In Debt Consolidation
Many credit card companies these days also offer debt consolidation services. Those who do not offer the same may still offer you some useful suggestions on how to consolidate credit card debt. The idea is to find out a way that should lower your monthly payments; that may even means a longer loan term. The lower monthly payments will provide you an opportunity to work on your finances and manage everything efficiently.
Try To Transfer All Your Debts Into The Lowest Rate Credit Card
If it is possible, you must go ahead and transfer all your debts to a single credit card that charges the lowest rate of interest. This way, you will end up having a single consolidated monthly payment at a very low rate, allowing you a better control over your finances.
Save More And Pay More Toward Your Debts
The only way to get rid of your debts sooner is to pay more than the minimum payment required. For this, you will need more money. You can get that money by earning more (such as by getting a second job) or by saving more (such as by doing some strict budgeting to cut down your expenses). The higher amount you pay every month, the sooner you will be able to clear your debts.
Whatever plan you follow to consolidate credit card debt, make sure you stick to the same. Your awareness and consistency are the two key factors that will help you achieve a .