7 Tips To Help You Get Out of Credit Card Debt
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It May Take More Than Freezing Your Credit Card To Get Out Of Debt
How to get out of credit card debt is one of the biggest concerns for a single mom these days. While there’s no quick fix, there is hope, and we’re here to advise you how you can be debt free sooner than you think.
1. You need to realize that paying with a credit card is only prolonging the inevitable, if you’re not able to afford it now, what makes you think you’ll be able to afford it later? So, in short, just say no to using your credit card. Sit down calculate what you’re spending the most money on, then try reducing it or eliminating it altogether.
2. Gather all your credit card bills and separate necessary debt, with unnecessary debt. Debt that most people need consist of home mortgages, student and automobile loans. Also, the interest rate usually ranges to about 10%. Not to mention tax credits that are available for these types of loans such as the First-Time Homeowner Credit where the government awards you $8,000 if it’s your first time buying a home. Unnecessary debt is almost everything else; credit cards from clothing stores, electronic stores, etc.
3. Just pick one, or two credit cards with the lowest annual interest rate and ONLY use them for emergencies. But don’t keep them in your wallet, keep them in a drawer or box, so you’ll know when it’s a real emergency. ALL the other credit cards- get rid of them, and I don’t men by freezing them or leaving them at home with your other two “emergency cards,” I mean cut them up in tiny pieces so you won’t be able to even read the numbers anymore. It sounds drastic, but drastic times calls for drastic measures.
4. Pick up all the other credit card bills that you’ve probably thrown on your floor and add up all the minimum payments. Make a solid effort to pay the minimum on each card, and choose the one with the highest annual interest rate to pay more on. Repeat until you have paid this off in full. Then pick the card with the second highest interest rate and pay more than the minimum balance until you’ve paid that one off. If you can’t afford to do this you’ll need to increase your income or lower your expenses even more, it’s harsh, but it just has to be done.
5. Take one of your credit card bills, call the 1-800 number and barter with the collector to lower your interest rate, Reassure them that you want to continue your business with them, but you simply can’t afford to pay that high of interest. This part’s not going to be fun, but if you’re really serious about getting out of credit card debt you’ll do it.
6. Try, try, try to stick by your regime and not skip any payments. if an emergency does occur and you can’t make a payment one month, don’t give up, you’re still way ahead of what you were when you initially started.
7. Celebrate by buying yourself something really nice. Just kidding!! But do give yourself credit for getting yourself out of bad debt. Remember, this may take awhile, but in the end, it’ll be worth it.
8. Contact Debt Agency to get a plan together to get out of debt in 3-4 years
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