Consumer Credit Card Debt Help

Make debt elimination a priority and quickly erase your outstanding balances. Debt is a vicious cycle, and if you are unable to control spending, you could spend the greater portion of your life paying down high credit card balances. Once you've paid down debt, you'll be free of that cycle and your credit score will likely improve.

Automated Payments

Automated payments set up with your personal bank and creditor takes the hassle out of paying bills each month. Signing up for this service is usually free, and once enrolled, monthly payments for your creditors are automatically drafted from your bank account on a specific day of each month. You won't have to write a check or mail in a payment. This alleviates lateness and helps keep your payment history good with the creditor. Additionally, some creditors offer lower interest rates to individuals who enroll in automated monthly payments. A lower rate on your credit card or other loans equals fewer interest payments and balances that go down quicker. Talk with your creditors to see if you can get a reduced rate with automated payments.

Monthly Payment

Whether you're enrolled in automated payments or you choose to manually submit your payments each month, get into a habit of paying more than the required minimum. You're not locked into paying only the minimum each month; creditors and lenders gladly accept higher payments. By paying more than the minimum, you're able to get rid of your balance faster. Check your finances to see what you can afford. This might call for reducing the amount you spend on entertainment or recreation.

Consolidation

Debt consolidation works if you have several creditors and higher interest rates. Juggling numerous creditors each month can become confusing and complicated. Simplifying your monthly bills and acquiring a better interest rate on outstanding debts helps you manage your debts and pay off balances sooner. There are different methods of consolidation. Go through a bank and use your home's equity or car as collateral, or consolidate through a debt management company. Banks issue a loan to pay off your balances, whereas debt management companies simply merge your debts into a single bill. Discuss eligibility with your bank. If you don't qualify, research nonprofit debt management companies and ask about consolidation options.

Credit Card Use

Some people use credit cards while trying to pay off their consumer debt. Sadly, this method rarely works, and if you're serious about debt elimination, it's time to stop credit card use and rely on cash. Carrying credit cards in your wallet or purse increases the temptation to spend impulsively. By leaving cards at home, or by cutting up your credit cards, you remove this temptation and become more likely to wait until you have cash to buy merchandise.