Credit Card Debt Solution: First steps
Since you are here you have probably decided that you have a credit card debt problem. You are also looking for a solution. Your credit is more important today than it has ever been before. It is something that should not be taken lightly. Your credit rating and history affect more things in your life than you can imagine. So let’s take a look at what you should start doing right away.
Stop Spending
Do not spend money that you do not have. If you don’t have the discipline, do not carry a credit card or cash. You can’t spend what you don’t have. Lose that mind set that tells you that a coffee from Starbucks will not hurt your credit situation. If you multiply it by the number of times that you do it in a year, you will see how much it is costing you.
Create a Budget Plan
Nothing will happen in any area of your life without a plan. You need to know how much you make and how much you can spend. You must have a plan for a solution that will allow you to eliminate your credit card debt while still paying your necessary bills. You must get your priorities in order. Only the government can spend more than it takes in. You are not the government!
Use Cash Instead of Credit Card
Spending money on a credit card is too easy and not much like spending real money. Since most people don’t see the bill until the end of the month they do not realize how fast it adds up. If you have cash and you watch it disappear as you spend it, it is real.
Improve Your Credit Card Rate
You need to know exactly how much of your payments are going towards the principle of your credit card debt. Part of your solution must include paying less interest and more towards the principle. Your credit history and rating will determine how much help you can get. If it is bad, you will probably not qualify for a lower interest rate credit card.
The very first place to start is with your credit card provider. Get on the phone and talk with someone who is authorized to make decisions. You may be surprised at their willingness to help.
If you can not get a lower rate, and your rate is too high, you may have to look in a different direction. Perhaps your local bank can give you a loan at a lower rate. Maybe you could get a secured loan against your home.
Credit Card Debt Solution: Final words
Credit card debt can ruin your financial future. There are several solutions of eliminating your credit card debt in this article. None will help if you eliminate the debt and then just get back into debt. Some fixes will only work one time. I have seen people take out a second mortgage on their homes to repay credit card debt. And then they take the same credit cards and max them out again. This makes the situation even worse than it was when it started. Make sure that you have learned that lesson and took away the temptation to get back into debt.