The question on how to get out of credit card debt is on every American’s mind – well at least one in every household does.
The good news is, getting out of debt is possible. The bad news is, it is not easy. Accumulating all those debts is easier than getting out of them.
You will find a lot of debt relief help out there who have services available to assist you in conquering the credit card debt that you have accumulated. There are various options that you can look into like debt management, debt settlement, debt consolidation, credit counseling and even bankruptcy. All of these options will involve experts to assist you.
But despite the presence of these experts, if you do not curb your spending habits and start managing your finances wisely, you can end up in the same situation again.
Tips to Get Out of Credit Card Debt Permanently
When you find yourself in credit card debt, the first thing you need to do is let go of your credit cards. Literally cutting your cards, save one for emergencies is an excellent start. You are actually cutting your dependency from your card. This will also prevent you from further stacking up on debt.
The next step is to assess your financial standing. This involves looking into your income, listing your expenses (in detail!) and categorizing your debts from the highest interest to the lowest while taking note of the minimum payment requirements. The goal here is to know the difference between your income and your expenses and see if that amount is greater than the total minimum payment of all your debts.
The thing to do is to consciously overpay your monthly credit card obligations. This way, you are able to cut on the principal down and allows you to save on interest payments in the long run. This also shortens your overall payment period. If you can, target to pay more than the minimum requirement.
If there is not much left of your income after the expenses, you need to concentrate on the high interest credit card debts first. There is really no way around it. If you have to choose which among your debts to settle first, the high interest ones should be your priority. Try switching paying for credit cards every few months or so.
It is still best, however, to pay for all your credit cards at the same time -even if that means paying for the minimum of the rest while concentrating on the high interest cards.
Ultimately, you need to look into your expenses to see where you can save more. Even if that means walking to work or cancelling subscriptions and memberships that you can live without, these can help add to the funds you have allotted to pay off your debts. You can also think of ways to increase your income. If you can sell of some of your things or get a part time job, that could help. At least until your salary can cover your debts. You can try baking and selling them on weekend food markets. There are several things that an ingenuous mind can come up with. Online jobs also abound and this is another option for you.
You can also call your creditors to tell them of your situation. Discuss with all honesty that you are having financial troubles but you want to work on paying your debts. They should be able to help you come up with terms that you can afford to pay.
It also helps to develop a budget plan that will help you monitor all your spending. It also keeps you on track to make sure you do not spend more than what you can afford.
If you need expert advice, give us a call. NationalDebtRelief.com is a debt relief company who caters to people who are having a hard time paying off their debts. Fill out the short form on this page so we can have someone get in touch with you. We also have toll free numbers and a live chat support so you can have someone discuss your problems with you right now.