Credit cards offer a faster way to pay for your purchases when you do not have cash. However, you should not pay all your expenses with your credit card. You should have a savings fund that you can use to pay for emergencies such as illness or if you lose your job. Using your credit card to pay for emergencies will only make your financial situation worse. The following tips can help you reduce credit card debts.
Write a Budget Plan
Make a list of your monthly expenses and check it to see if you can make some cut backs. Work out a budget that includes all your monthly expenses and income. Categorize the expenses into bills, groceries, entertainment and mortgages. Deduct the expenses from your income. If you have some cash left, you can use this money to pay your credit card debt. If you find that you have a deficit, your financial situation is not good and you may incur even more debt.
Pay More than the Minimum
Interest charges are what make credit card debts accumulate. If you pay just the minimum amount required, it’ll take longer to clear your debts. This means it will expensive because with each passing month, your interest charges accumulate. Pay more than the minimum balance to clear your debts in a shorter amount of time.
Highest interest card first
If you have multiple credit cards, start by paying off the one with the highest interest rate. However, don’t stop making the minimum monthly payments on your other cards. Concentrate on clearing the debt with the highest interest by paying more than the minimum amount.
Consolidate your credit card debt
If you have multiple credit cards, it may be difficult to keep up with all your various payments. You might forget to make a payment and end up getting penalized. Debt consolidation enables you to make a single monthly payment that is usually lower than the sum of the payments you’re making now so you can comfortably pay your debts. The interest is lower so your debt will not accumulate. After some time, you will find out that your debts have significantly reduced.
Interest free balance transfers
If you have a lower interest rate card where you have not yet reached your limit, you could transfer your high interest debts to that card. Do the math and you may be surprised at how much you could save. Take advantage of the 0% interest that is offered by most credit card companies as balance transfer offers. This interest-free period will last from six to 18 months so use this time to clear your debts.
Low interest credit cards
Due to stiff competition among the credit card companies, low interest cards have been introduced. Many credit card companies charge an interest rate ranging from 18-19%. which is very high compared to low interest cards where the rate typically ranges from 8-12%. While these cards have fewer benefits, they can help you save a lot of money.
Contact your credit card company
If you cannot keep up with your monthly payments, contact your creditors and explain your financial situation to them. They will work out a payment plan that will enable you to comfortably pay your minimum payment. They may waiver the interest rate until you finally get hold of your financial situation.
National Debt Relief helps resolve debt for people nationwide who owe $10k+ in unsecured debt. Our experts negotiate with creditors so that clients pay only a fraction of what they owe and can become debt free in as little as 24-48 months. 
