Manage Credit Card Debt
Millions of people have credit cards these days and it's
hardly surprising that the majority of people find it difficult
to manage their credit cards debt.
In fact, recent figures show that credit card debt is slowly
spiralling out of control as more and more people have begun to
rely on their credit cards for purchasing even the basic
Financial experts say that there are several excellent methods
of eliminating credit card debt, some involve paying off each
debt one at a time, other methods involve taking on a single
consolidation loan or account that rolls all existing debt into
a single payment at a significantly lower interest rate. Such
loans can include equity loans and second mortgages, as well as
personal loans and new credit accounts.
When tackling debts one at a time experts suggest addressing
the card with the highest rate of interest, regardless of the
balance on that account. By eliminating the highest rates first
the consumer is not only eliminating unnecessary expense, but
also enhancing their credit score by having an account with a
zero balance. Carrying high credit card debt loads negatively
impacts a consumer’s credit score, even if they are up to date
and current on their payments.
Another method of reducing and eliminating credit card debt is
to consolidate the debt through a loan or account of some sort.
There are many banks that encourage homeowners to refinance
their mortgages, or take equity loans to eliminate the burden
of credit card debt on the monthly budget. A loan such as this
will always provide a significantly lower rate of interest than
most consumer credit card companies. A consumer should be aware
that they still need to make aggressive payments on the debt as
it is not a wise choice to take credit card debt and turn it
into a fifteen or twenty year repayment schedule.
There are also some attractive balance transfer opportunities,
and these usually apply from one credit card company to
another. A consumer should investigate such an offer thoroughly
before taking advantage of the lower rate. Many balance
transfer rates come with transaction fees that are percentages
of the entire balance, some have expiration dates on the lower
interest rates and some companies charge extra fees to a credit
card holder if they payoff their credit card debt using a
balance transfer offer.
Today, credit card debt is affecting every level of income and
every type of household in the country. While credit accounts
can prove extremely handy under the current economy over the
long run they can create financial hardship. For example,
consumers who are paying minimum due amounts will not see
higher balances disappear for a very long period of time. This
is why experts suggest developing a plan that eliminates
balances as quickly as possible, which reduces the total
payment amount and puts a budget under control.
There are many agencies and consumer advocates who can help
individuals and families who feel overburdened by credit card
debt. Some lenders and credit companies take advantage of
customers and some have unfair and unrealistic policies, and it
is a good idea for a consumer to seek out help if they feel
they are in a bad situation. There are also many banks and
educational agencies that are addressing the credit card debt
situation in the country by offering training and classes in
basic and advanced personal financial management. If credit
card debt is negatively impacting a household, it is a great
time to seek advice and assistance wherever available.
On this website, we hope to provide our readers with the
necessary information to help them control and manage the
amount of credit card debt that they may have accumulated over
the last few years of easy credit.
You'll find useful information, helpful advice plus all
the tips and resources you need to manage your credit card
debt more effectively.