How to manage your Credit Card accounts

Learn how to get your finances back in order, pay debts down and deal with delinquent accounts.

Difficulty: Moderate

Instructions

Things You'll Need:

• Notebook (Ledger/Cash book is my preferred book)
• Copies of all your credit card statements
• Pen
• Pencil
• Phone
• Internet
• PATIENCE!

1. 
    
   Example of how we are going to be filling out this page.

   At the top of your notebook paper, or ledger book page, you are going to label it: Amount, Due, Contact, Paid (Pd), Balance, %, Conditions. I personally leave the last one blank, but you can use it for whatever you'd like. :)
   
   Amount = Amount Due (this is going to include any past due fees, late fees, etc) Whatever it is that the credit card company is wanting from you at this moment, write it here.
   
   Due = Date when it's expected to be received by the credit card company to avoid any further fees and/or damage to your credit report.
   
   Contact = Any contact made with the credit card company. Did you call to get a fee removed? Write it down. If they called you, make a note. I write letters because I find them to be more effective (I will be explaining this more in a later "How To").
   
   Paid = Have you paid it this month? If you did not pay the full amount, just write in how much you did pay. If you paid everything due, make a check mark or write YES.
   
   Balance = How much do you still owe on this account?
   
   % = How much is your interest rate? You can either call and ask or find this information on your statement.
   
   Conditions = Is this account over it's limit? Past due? 30 days? 60 days? 90 days? If it's not current, fill in this area with whatever it's ailment is.
   
   Also, at the top of your page, write down the name of the credit card company, the last 4 digits (so you can keep track) and your credit limit.

2. Now, realize you are going to have a page just like this for every single one of your accounts. This is just an example of one. The formula just needs to be repeated. You'll have different information for every one so that's why I suggest grabbing a copy of all your latest statements. If you do online bill pay, your credit card company should have a printable version of your statement.

3. The key to getting back on track with your credit cards is PERSISTENCE. Don't give up. If you have a late fee and the customer service representative would not remove it for you, persevere. I don't find calling to be a good way to handle business. Unless you just happen to get a very nice representative. If you have the time to spend on the phone to continuously call until you get someone who will remove the fee, go for it! I prefer the old-fashioned snail mail. You can easily print out as many copies of your letter as you'd like and send one everyday until you hear word back. It really works!

4. There are a few things you can do when dealing with a credit card company. Whether you have one or many late fees, over limit fees, etc you can write to them a Goodwill Letter asking for the removal (please). Be nice and courteous. If you were unemployed, had a family member in the hospital, etc, include it in your letter. Make them realize that you are a human being and hey shi...crap happens. ;)

5. If you are very far behind, call them up and try to work out an arrangement. "I can't afford to pay the total amount due this month, is there a way we can work this out?" Just remember that while it is frustrating for you, the person on the other end of the phone hasn't done anything to you personally. Be nice and thank them for any kind of help they provide you with.

6. Make a game plan. How long do you want it take to pay this card off. What is your goal? Figure out approximately how much you would need to pay every month for a year to get this bill out of your hair. If you prefer to attack all the cards at once, you need to use this approach for all of them. If you prefer to tackle one at a time, figure out how much you can spare to get this card paid off immediately. For instance, we'll use our example. The balance is $986. If you can pay $300 towards it every month, you'll have it paid off in 3-4 months. During this time, pay the minimums or just slightly over your minimums on your other accounts. Then when this card is finished, pick your next victim. Suggestion: Start with the card you're the most delinquent on first. Next work on the one with the highest interest rate.

7. The goal is to get caught up and get everything paid off. It won't happen overnight, trust me. But with a plan, it will happen eventually.

[healthymomof5]

on 2/5/2009 Great advice!5*