How to Diminish Your Credit Card Debt

We have become a people who are too comfortable using credit. Americans have always used credit to buy homes, vehicles, and usually college educations. But, only in the last few years, have we been taking advantage of the all too frequent credit card offers that were sent via mail.
We used them carelessly, not remembering their interest rates, late fees and penalties. So, many people now have huge credit card bills, with only the memory of a Caribbean vacation to show for it. thankfully, there are steps to be taken to free yourself of crippling credit card debt.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Self control

1. STOP using your credit card! before thinking about it's use, consider this:"If I had to go to a bank and ask for a loan for this purchase, would I do it?"

2. ALWAYS pay on time, even if you have only the minimum due. This will prevent penalties and higher interest rates to be accrued. If you CAN, apply all extra income to reducing the debt, if possible. This would include applying your IRS overpayment check, if possible.

3. ELIMINATE your highest interest rate debt first. Spend time to list each creditor, the amount due and the percentage charged. Then pay minimum payments om the lesser interest debt, and largest payment on the high interest debt. (Tax deductible loans, such as student loans are paid off lastly.)

4. TRY TO TRANSFER balances to lower interest credit cards. If you are paying over 14% on any card, call that card's customer credit department and ask for a lower interest transfer first. If you imply that you may look elsewhere to do this, they are usually agreeable to negotiating the interest rate. Visit the website: IndexCreditCards.com for more information.

5. SEEK HELP- If you are WAY over your head, due to hardship, visit www.bills.comdebtconsolidationarticle1/ to find debt relief alternatives available.

Tips & Warnings

• This economy can cause any of us to fall behind on bills. The idea is NOT to allow a temporary hardship to become a permanent financial hardship.
• Do NOT ignore debt problems--as this can only dig you in deeper.

[deshmukh]

on 2/21/2009 Excellent. Thank you for sharing. Your tips are really helpful in the current economic situation.

[Elander]

on 2/18/2009 Excellent advice.

[thesquirrelymom]

on 2/16/2009 Great advice for everyone.