The Best Ways to Reduce Credit Card Debt

Many Americans fall into trouble with excess amounts of credit card debt at one point or another. Increasing interest rates and finance charges can feel smothering and cause you to get behind on payments and ultimately fall further and further into debt. It is important to remember that there is a way to rid yourself of this burden. The following are a few suggestions about the best ways to reduce credit card debt.

Minimum Payment

When attempting to dramatically reduce the total amount of your credit card debt, it is important to remember to pay as much over the minimum payment per month as you can. Paying the minimum payment splits your payment between the principle and the interest that you owe. Simply paying the minimum payment will take significantly longer to pay off your debt than if you make larger payments.

Create a Budget

Another helpful way to reduce your credit card debt is to create a monthly budget. By putting all of your expenses (living expenses, groceries, gas for your car, etc.) into a perspective that you can constantly look at, you can see how it all fits together and see what you need to cut out to be able to pay down your credit card debt.

Negotiations

It is always a good idea to call your credit card company (or collection agency if it has come to that) and attempt to make a deal. Often times, by just speaking to a representative and outlining your monthly budget, you can cut your interest rates by substantial amounts and suspend any finance charges you may be incurring. You may also even be able to delay your payments to better fit your schedule.