How to Stop Paying Credit Card Debt
Although most people have at least one credit card and on average $8,000 in credit card debt, no one enjoys paying the finance charges.
Having too much credit card debt will lower your credit score and prevent you from obtaining good terms on a mortgage or car loan. To stop paying credit card debt, be proactive and follow these steps.
Other People Are Reading
Instructions
-
-
1
Take a look at the credit card debt you need to settle and total the amount of money you owe. Look at the interest rates you are being charged on your credit card balances and, if you have more than one credit card, find out which one has the highest interest rate. Focus on paying off the credit card debt with the highest interest rate first.
-
2
Call your credit card companies and ask them to lower your interest rates. If you have consistently paid your credit card payments on time, you should be able to have your interest rates lowered. Do research on today's interest rates so that you know what interest rate would be reasonable to request. (See Resources for links on interest rates.) Having lower interest rates will help you to pay off your credit card debt faster.
-
-
3
Look for a deal to transfer your credit card balance. Often, credit card companies will allow you to transfer your credit card balance to a new card for 0 percent APR for a certain number of months. In other words, this will allow you several months without having to pay any interest fees on your credit card debt. During this time, you can work on paying down your credit card balance without having to pay any finance charges. See the links under Resources in order to find a credit card that will allow you to transfer your balance with 0 percent APR.
-
4
Apply for a cash advance loan. There are many cash advance stores where you can obtain a short-term loan to pay off credit card debt. However, be careful not to get trapped in cash advance debt while trying to pay off your credit card debt. This is only a good option if you are able to get a good interest rate and are sure that you will be able to pay back your loan quickly. (See Resources for link.)
-
5
Ask your credit card company to write off debt. As a last-resort option, tell your credit card company that you are unable to make your credit card payments. The credit card company will try to help you work out a payment plan or may negotiate with you to see what amount you are able to pay. The credit card company would prefer to write off part of your debt rather than go through the hassle of taking legal action against you.
-
1
References
Resources
More Like This
Comments
-
groovahzi
Oct 20, 2009
With reference to step 3. It is important to read the fine print on those 0% APR balance transfer deals as there is often a balnce transfer fee charged that is often around 3%. So 3% of an $8,000 transfer equals $240 which is then ADDED to what you will owe. Do the math to make sure it is worth it.
