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Credit
cards usually offer us the convenience of shopping for
something at that moment even if we don't have ready
cash in our pockets. They also good for travel and other
expenses and and one pays only one bill every month.
The
main problem is that many people usually overextend
themselves and find that they have drowned themselves
in high interest credit card debt. It is estimated that
the current credit card debt totals about $360,000,000!
Credit
card debt is easy to get in and eliminating debt is
not usually easy as it sounds. How then can we reduce
credit card debt? Below are a few credit debt elimination
strategies you can use to prevent yourself from falling
into debt or if you're already in the mess what action
you need to take..
1.
Pay Off All Your Card Balances Each Month
When
signing up for a credit card you are given the option
of paying up the minimum amount on the balances accured
on your card or paying 100%. Do everything possible
to pay off ALL your balances. Most credit cards have
interest rates between 13.5 percent and 21 percent which
is not wise. If you end up paying the minimum amount
on your card the interest charges will rise up pretty
quickly without you noticing.
2.
Auto Credit Authorization
Most
issuers of credit cards have the option of "Auto
Crediting" where you instruct them to automatically
withdraw money from your bank account on balances accumulated
on your card at the end of the month. When you go with
this option you are sure that you won't forget to clear
your balances and end up being slapped with interest
charges.
3.
Pay More Than The Minimum
If
you cannot afford to pay off the entire balance on your
card, make the effort to make payments that are in excess
of the minimum due. The minimum payments are simply
the interest amount due on the principal. Please note
that if you only pay the minimum amount you'll never
pay off the debt!
Making
minimum payments is what the banks want you to do! Its
only logical that the longer you take to repay the charges,
the more interest the banks make and the less money
you have. Its a vicious game. Depending on the outstanding
balances, you can add at least $50 to several hundred
dollars to the minimum in order to reduce the principal
balance.
4.
Request The Bank To Lower Interest Charges
If
you find that you have accumulated a huge debt call
the bank and request them to lower their interest charges.
Don't be suprised when they agree to it. The thing is,
the bank would rather see you pay off the debt than
see you in their bad debt write-offs. Let your lenders
know the mess you're in. Inform them that if you are
unable to renegotiate the terms, then you've got no
other step than to declare bankruptcy.
Request
for a new and lower repayment schedule, a lower interest
rate and appeal to their desire to receive payment.
Most lenders will do anything to protect themselves
if they see that they are faced with a total loss and
will be willing to work with you.
5.
Stop Using Your Credit Cards
You
can take the drastic step of cutting up your credit
cards if that will help you in not using them. You can
also leave them behind at home and only carry one for
emergencies.
6.
Consolidate Your Debts
Calculate
the outstanding balances that you have on all of your
cards. By now you know the interest rates on your cards,
The next step is to combine your debts onto one or two
of your lowest credit cards. If you find that you have
maxed out on those cards, then its better to forget
it. Just telephone your your lender and them how to
transfer funds. If you're making payments well above
the minimum, have reduced the interest rates on your
cards, and have consolidated your debt, then you're
in good shape with your credit card debt
7.
Stop The Offers
Did
you know that you can actually force credit bureaus
to stop selling your name and address. Dial 1-888-5-OPTOUT
to get the forms. If you're searching for a low interest
card, search for it yourself and let sly shylock try
to sell you one. Why not start at this site and view
our recommendations!
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ELIMINATE
CREDIT CARD DEBT HELP