Literally thousands of people are in over their heads in credit card debt. Many have several credit cards that are maxed to the limit. There is no money to pay bills, no money to buy food and no money to live if they pay their monthly credit card bills. Here are some practical solutions to help you find relief from credit card debt.
Check the Interest Rate on Each Card
Checking the interest rate on each card is important because it will determine how to get relief from your credit card debt. If you can’t find the interest rate on your monthly statement, contact your credit card company, and ask them.
While you are talking with the people from the company, tell them you want to get your card paid off as soon as possible, and ask if there is any way they can help you. If they don’t offer to lower your interest rate, ask them to do it for you.
Find a Free Credit Card with Lower Interest Rates
If your credit card company has one of the higher interest rates and they won’t lower it for you, look on-line and see if you can find a free credit card with a much lower rate with no transfer charges. Contact the card company and talk to them about your decision to pay off your credit cards, and ask if they will accept your balance transfer. Make sure there are no hidden fees you will be charged.
Once you have the lowest interest rates possible, put your cards in order with the highest interest rate first. This is the order in which you will strive to pay them off.
Be Willing to Tighten the Strings and Generate Extra Income
Your mental attitude, at this point, is very important. If you still think you can spend and live the way you want to, this will never work. If you are tired of being in debt and have come to the place you are willing to do whatever is necessary to eliminate your credit card debt, then you are ready to begin.
You will need to generate extra income in order to be successful in paying off your debts. The best way to do this is to eliminate spending for extras. If you have the opportunity to work a second job or if you can pick up odd jobs on the side, do it. You will need all the extra money you can get in order to become debt free.
Make a Strict Budget
Determine what it costs you each month to live. This will include just the basics: bills to pay, basic groceries, and gas. Do not include anything in your budget that is not absolutely necessary. This means that for a time you will need to eliminate the following activities: eating out in restaurants, recreational activities you have to pay for, buying things you want when they aren’t necessary and going places it isn’t absolutely necessary to go. Do NOT purchase anything else on credit!
Thinking about all you need to give up for a time may have you feeling like you are on your death bed, but remember your goal. You want to have relief from your credit card debt as soon as possible.
Pay Off Your Credit Cards
Call all the credit card companies, except the one with the lowest interest rate, and tell them you want to pay off your credit card and you would like them to close your account so you can get it paid off.
Begin paying off the credit card with the highest interest rate first. Its likely you are paying hundreds and maybe thousands of dollars a year, depending on the amount of your debt, in just interest. That is money that can be used to help you eliminate more of your credit card debt! Keep up the minimum monthly payments on your other cards while paying off the first one.
Play a game with yourself to see how much you can pay off each month. Most credit card companies accept additional monthly payments so anytime you have generated extra cash, make a payment.
Once the first card is paid off, take the monthly amount you were paying on it, and add it to the minimum payment on the next highest interest card. Continue this with each card. By doing this you will soon be paying several hundred dollars or even thousands to the monthly payment on one card. This is one of the most practical solutions for relief from credit card debt that you will find.
Follow these steps faithfully and watch your credit card debt decrease!