Credit Card Debt Self-Help

Is it possible to get yourself out of credit card debt? Yes, of course. You can call the credit card companies you owe money to and negotiate a settlement – sometimes. The credit card company may just hang up on you, but in this bad economy, many companies are dealing to keep their customers. The more customers they keep, the more fees they can assess and the more money they earn.

So you can get this process underway. But beware…to have a chance of doing a deal, you need to take it step by step, and it is a very long process.

First, decide what kind of a solution you want. There are several.

You can ask to pay a lump sum. This only works if you have some money stored away that you can use. Ask if they will waive some of the fees. They may or may not. See if you can pay the lump sum in 2 or 3 payments if you need to. Your credit score will take a hit and be listed as a charge-off.
You can ask for a workout arrangement, which is, basically, payments. Ask the creditor to forgive the fees. They may offer you a temporary arrangement until your finances are more stable, or permanent to pay off the balance. Your credit score will probably take a hit. Ask the company how they will report to the credit reporting bureaus so you can get it reported in the best possible light. They will probably stop your line of credit so you can’t use the card anymore.

If you don’t want to deal with the credit card companies themselves, hire a debt management company. Be sure they are reputable. Use one that belongs to the National Foundation for Credit Counseling or Association of Independent Consumer Credit Counseling Agencies. Or you can ask your bank for suggestions. There will be some fees to pay, but they are limited through an accredited company. Credit card companies are becoming more and more willing to work with them.
You can ask about their forbearance program. In this case, the company gives you a few months free from payments so you can get back on your feet.

Step 2 is to work out a budget so you know how much money you have to work with. Always go in knowing all the facts and with a battle plan.

Step 3 is to actually call the company. Ask the customer service rep for a manager higher up in the company. You can try asking for the workout arrangement department, loss mitigation, or perhaps settlement arrangements. Don’t waste time sending a letter. It will never get answered. Be ready to call again…and again… and again. You may have to call for several months before you get all the details worked out. Be fair. You owe the money. But try to get the best deal you can, get some of the fees waived, and set up a payment or other plan. Your efforts may very well be rewarded with a lower amount of debt.

Credit Card Debt is Unnecessary

There are so many people out there who are drowning in credit card debt.  They get a credit card and treat it like it’s a license to spend.  Oh my! I have money now!  This really isn’t a credit card problem, it’s a behavior problem.  But credit card companies play on that emotion to urge you to use your credit card more.  That’s how they make their money—from the interest and fees they receive when you run out of paycheck before you run out of credit card bills.

If you are in a credit card debt situation, you must stop spending on your card.  The best way to do this is to create a budget.  Most people don’t create a budget because they are intimidating.  Dave Ramsey’s advice on credit card debt is to sell a bunch of stuff in a rummage sale, take an extra job, or anything else that will bring in extra income, pay off the credit card, then never use it again.  To Dave, “Cash is King,” use a debit card.

To get started with your budget, write down everything you spend for the next two weeks so you can get a handle on exactly where your money is going.  Then your budget will be much more accurate and you can prioritize your expenditures, weeding out the things you don’t really need.  That money can go toward your credit card bill.

If earning extra income doesn’t work for you for some reason, or you are having difficulty paying all of your bills every month, contact the credit card companies and other creditors and explain your hardship.  Try to negotiate lower monthly payments.  If you do this for your secured debt, you could end up with more money to pay off the credit card.  Once paid off, that money could go back to your secured debt payments.  Just a thought.

You may feel a real urgency to pay off debt that you owe if you are getting calls from creditors and collections agencies.  Don’t let them bully you.  There are fair market practices that they have to follow. They are not allowed to lie to you or call you before 8:00 am or after 9:00 pm.  They must honor a written request from you requesting them to stop calling you.

If you are unable to manage your finances on your own, consider credit counseling.  There are reputable services out there, but there are many that are not so.  Be careful in vetting these agencies, and look for unadvertised fees that may add more debt.  Ask your bank for a recommendation if you are unsure.  Family and friends may know of reputable agencies as well.

There are more types of debt management, including bankruptcy and debt settlement programs.  But these are risky endeavors, and will probably have a negative effect on your credit rating.  Especially with debt settlement programs, let the buyer beware.

Manage Credit Card Debt: Lower Your Interest Rate

It is estimated that that average household in the US with credit cards carries more than $15,000 in debt.  When coupled with high interest rates and an ability to make minimum payments, it can be difficult to see the light at the end of the tunnel.  According to the Federal Reserve, the average interest rate on a credit card is 12.98 percent, which means that half the population is paying interest rates well above that.  Credit card interest rates of 30% are not heard of for consumers with lower credit scores or a history of missed payments.  But there’s good news.  Several options are available to consumers to lower their interest rates.

Negotiate with your current credit card company:  First of all, find out what interest rate you’re currently paying.  You can find this out in a few ways.  The easiest is to look at your most recent statement.  You can also check your account online if you have one, or call your credit card company and ask.  Once you understand what the current rate is that you’re paying, find out your credit score and find out the average for your range or look at comparable credit card offers.  Armed with this information, call and ask for a reduced interest rate.  Emphasize factors such as the length of your relationship, your positive payment history, and associated accounts.  Demonstrating that you are a good customer will help make your point.  Share the information you’ve found about the average.  Finally, if you aren’t being successful, be willing to state that you will consider taking your business elsewhere.  Also consider asking to speak to a supervisor, as the first-line customer service managers may not have the authority to adjust your rate.

Consider consolidating with a different card:  If you’re unable to reduce your interest rate with your current company, consider consolidating your balance by opening a new account and transferring the balance.  Credit card companies often offer outstanding deals to new customers and allow them to transfer a balance for as low as a 0% APR.  Use credit card aggregation sites such as bankrate.com or creditcard.com, or search direct on your preferred lender’s site to find the best deals.

Ask about a debt consolidation option: If you are carrying a level of debt that far outweighs your ability to repay it, you may want to consider talking to debt repayment company.  Typically, this is how it works.  The company, which should be a non-profit institution, will take control of all your debts.  They will negotiate on your behalf with the debtors, who will in turn lower your interest rate.  Your accounts will be frozen, and you’ll be unable to use them; further, they may be closed at the end of the program.  Each month you will make a combined payment to the consolidation company who will repay the debts on your behalf until your balance is at zero.  Because this can have a negative effect on your credit rating, this should be considered only in situations of very serious debt.

Credit Card Debt Relief Now

Many people are suffering from credit card debt in our society, and most of them don’t even realize what they are doing to themselves. With the state our economy is in many people are turning to their credit cards to pay for everything that they need, whether or not they have the money to pay the credit card company back. This growing problem is only making the economy worse and many people can’t seem to get ahold of their financial situations because of it. Here are a few ways that you can turn your credit card debt around, and eliminate some of the debt from your life and finances.

First, it is very crucial that when making any type of credit card purchase that it isn’t used on things that you consume. When purchasing with a credit card it should only be for things that are absolutely necessary and it should only be used on things that can be seen as an investment. To eliminate your debts it is a good idea to purchase things that will create some revenue for you, rather than spending money that will never be coming back to you from that purchase. So many people get into debt because they likely spend more money than they are earning; this can be eliminated by either making more money or spending less money on things that aren’t making you any money in return. Getting out of credit card debt isn’t going to be easy, but one of the ways you can make sure not to spend any money on your credit cards is to get rid of them; you can do this by cutting them up into pieces or by simply calling the credit card company and officially cancelling the card.

An easy way to make sure that you will pay your credit card debt is to make a list of all your debts, or a spreadsheet that will allow you access to all the different debts you owe. Included in this list should be all the names of your credit cards, the banks you owe to and the amount of the debt you owe. It could be a good idea for you to add in the interest for all the different cards into the list, making it easier to keep track of what exactly you owe. After doing this it will be a good idea to make a budget that is based on your monthly finances; this should include anything you spend a significant amount of your income on – bills, etc. You will then be able to add in a credit card payment, or maybe more than one into your budget; making your budget allows you to identify where there is room for another bill, and makes it easier to cut things that are unnecessary out of your budget in order to save the maximum amount of money while still getting you out of your credit card debt.

Getting out of your credit card debt doesn’t have to be a hard process, by following these tips and staying true to not spending any money on your credit cards unless absolutely crucial you will find that it is easy to cut your credit card debt down. This will in turn make your life a lot more carefree, and with less hassle and worry.

Credit Card Debt And How To Relieve It

Credit card debt is something that many people are going through and suffering from. So many people get stuck in a situation, use their credit card and then without even realizing what they are doing are suddenly sucked into debt that will last them a long time. With the state our economy is in people are finding it easier to turn to credit cards to pay for things instead of actual money, they do this with no intention of paying the credit card company back. This growing problem is one of the reasons why our economy is in the current state it is in, and its only getting worse. If you are one of the many that are stuck in credit card debt here are a couple different ways that you might be able to get out of it; or at least get a head start on getting rid of some of the debt.

It is important when using a credit card at all to not use it on things that you consume; credit cards should be used only for investments and things that will produce more money for you. This is extremely helpful to not spend money on things that are costing you additional money, but to use your money on things that will only produce more revenue for you. People get into debt easily by using their credit cards to buy things that are more than their actual income; the key to getting out of your debt is to either produce more income or stop spending so much money, or maybe even both. Getting rid of the credit cards is also a good idea when you are trying to get out of your credit card debt. If the card is there it is tempting to use it on whatever you need to purchase, which can easily lead you back into the habit of spending.

Creating a list or an online spreadsheet will allow you to make a list of all the credit card debt you have, in order to prioritize it. The list should have the name of the bank that you owe to, the name of the card and the amount of debt that is owed. When this is done you should also add in the interest that you will accumulate monthly, and if you do not know the interest rate you can call the bank and they will be able to relay the information to you. After you are through with this process you should create a budget for yourself that contains all your finances and you can work on adding in one or more of the payments into your budget each month- or each time you get paid.

These are a few simple ways that you can get out of the credit card debt that is weighing you down and get a start on your financial situation. Many people either have or are suffering from credit card debt in our county, by having a mindset towards paying off your credit card debt you will find out that it isn’t as hard as it may seem and you will be able to peacefully make your way out of the debt.