Do you have credit card debt? This is something that can very easily get out of hand and credit card debt reduction should be something that you are always trying to accomplish. Besides not using your credit cards, there several other things you can do to get your consumer debt under control.
The past year’s economy has been a wake up call to many people. People who were going through life paying their bills every month may have been faced with unexpected unemployment or a salary reduction. Because we cannot foresee everything that is going to happen, we need to be financially prepared by reducing our debt and building and emergency fund.
Start by calling your credit card companies and asking them to lower your interest rates. This alone can save you hundreds of dollars in your credit card debt elimination endeavor. Right now many credit card companies are making deals with the card holders to pay off their balances, but many of the lenders are also closing the accounts when they are paid off. You will have to decide if you can do without the account and in some cases; the choice may not be yours.
If you are only making minimum payments and it is not in your budget to pay more, you may want to consider credit counseling. Your payments will not go down much, but your interest rates will be lowered significantly, your fees eliminated and you will only have to make one payment each month. This can have your debt paid off in about 3-5 years, depending on what you owe.
Find extra money in your budget to make larger payments. Most of us have expenses in our budget that we do not use or can cut. Then there is the latte factor. These are thing such as eating out, magazine subscriptions, Starbucks coffee…well you get the idea. Increasing your income is the flip side of this option. Find a way that you can make extra income. The more you have to put towards your payments each month, the faster you will see credit card debt relief.