How To Reduce Your Credit Debt
Debts can be a curse. If they are not managed properly, they can be a cause of stress and worry 24/7 and can take their toll not only on your financial but personal health as well. Most people who are going through such issues are mostly under credit card debt.
A credit card itself is a convenience in many ways but one that should be carefully dealt with. If you go on spending more than you can afford, there is every likelihood that you will get into credit card debt trouble.
If you are in such trouble already, take a chill pill and concentrate on how to get rid of the problem rather than continuing to sink into depression. There are many ways with which an out of control credit card debt can be managed and brought down.
Instructions
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1
Lose the Cards
The source of spending is the cards and it is best that you get rid of them altogether. Make sure that you dispose them off well enough that neither you nor anyone else can use them; you obviously don’t want more financial trouble due to credit card theft. Once you are not using them, you are not incurring any more debt and it’s your first step towards a debt free life.
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2
Contact Your Credit Card Company
Contact your card company and tell them about your financial position. Let them know that you are unable to make the payment at the current rate and ask for the monthly payment to be reduced. If you have maintained a good credit score, you can always bargain for a lower APR. It may not cut the debt immediately but it will have its effects in the long run when the bill will come down automatically.
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3
Reduce General Spending
This is very important. If you can cut your spending by say 10% per month, you can pay that money to your credit card company. It will mean that once you pay more than the minimum payment you owe, you will be paying towards your principal amount. This will not only reduce your bill but will also reduce the interest that you will have to pay in future payments.
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4
Stay Motivated
Keeping yourself going is not easy. One can easily be lured into spending $250 on your favourite baseball team’s new jersey. Fight those temptations. If you are even going to pay for that jersey with cash, then make sure it is money that you are not going to use for debt retirement. Instead stick to the last year jersey for now and be ready to lose some more debt. Appreciate yourself and understand the importance of this exercise.
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