Here are 5 tips on how to eliminate credit card debt that you can use:
#1 STOP USING YOUR CREDIT CARDS!
Enough is enough! You cannot continue to charge up your credit cards and ever hope to pay them off.
Suggestion... Keep the lowest interest rate card with the smallest balance for EMERGENCIES ONLY and DESTROY THE OTHER CARDS. It is only after you realize how deep in debt you are that you will stop using credit.
#2 TRY TO GET LOWER INTEREST RATES
You might consider consolidating your credit cards to one card that will offer a low or zero rate initially and then a reasonable rate (10% or less) after.
But be careful! Some of the advertisements have a lot of small print that can end up costing you more money.
- Hidden rates
- Hidden fees
You can also call your creditors and ask for a lower rate. Tell them you are shopping around for better rates and will be transferring your balance if they will not help you.
DON'T GET TALKED INTO A HARDSHIP PLAN!
#3 Use the SNOWBALL METHOD to pay off your credit cards.
The method is simple, yet very effective if:
- You are paying at least the minimum on all of your cards now
- You have additional money to increase the payment on one of the cards
If you cannot afford to do the SNOWBALL METHOD, then consider:
#4 DEBT MANAGEMENT PROGRAM
A Debt Management Program will allow you to have:
- One payment per month
- It may or may not be lower than the total of all of your minimum payments due now
- Will reduce interest rates and fees
- Help you become debt free in 4-5 years!
If you do not qualify for a Debt Management Program or cannot afford the payment, then you should consider tip #5.
#5 DEBT SETTLEMENT PROGRAM
A Debt Settlement Program is suitable for those under severe financial hardship such as:
- Unemployed
- Divorce
- Medical hardship
- Just not earning enough income to continue paying on the credit cards
A Debt Settlement Program will negotiate settlements on your unsecured debts including:
- credit cards
- store cards
- personal (unsecured loans)
- repossessions
- medical bills
The final settlement amount can be 50% or less than the balance AND your payment will be a lot less than the required minimum payments or a DMP payment.
Before you consider bankruptcy, please contact us for a FREE FINANCIAL EVALUATION.
