Steps to Help You Reduce Your Credit Card Debt
Credit card debt can become problematic very quickly because of the high interest rates charged by credit card companies. The following are a few tips that can help you reduce or eliminate your credit card debt without too much hassle:
- List your debts: If you have multiple credit cards, add up the amount of money you owe across all of them and make sure you have an accurate idea of how much debt you have. It’s not unusual for people to underestimate the amount they currently owe to their creditors.
- Negotiate lower rates: If possible, see if you can work with your creditors to secure lower interest rates. Even taking off one or two percentage points could save you hundreds of dollars as you work to repay your debts. Getting a lower rate could be as simple as picking up a phone and calling your creditor, although you may also need the assistance of an attorney.
- Stick to a budget: Make a new budget — reducing unnecessary expenses as much as possible — and stick to it. Make as much room as you can to pay off your debts while still leaving some space in your budget to save a little money each month. Forcing yourself to adhere to strict budgets and smart financial practices will also help you create good habits that last long after you have paid off your debts.
- Put away your credit cards: You don’t necessarily need to cut up your cards or close accounts, but you should at least put your credit cards away until you have paid off your debts. Do not add to the debt you are already facing. Instead, get into the habit of taking out cash and using it to pay for your expenses.
- Create a repayment strategy: Often, the best strategy is to focus first on paying off the card that has the highest interest rate while making minimum payments on your other cards. Note that the balance size will also play a role in your decision-making.
To learn more about your options, consult with an attorney at Miller Law Group PC, working as a debt relief agency serving central Virginia.