Credit card debt can start to pile up if you do not try to regulate it. Sometimes people can feel helpless when it comes to their credit card debt, but there are things that anyone can do to help lower their monthly credit obligation and get their debt under control.
Lower Your Interest Rate
If your credit card interest rates are 13% or higher, you may be able to lower your rates and decrease your overall credit card debt. Your credit card accounts need to be in good standing before you can proceed. If you have a history of making late payments, then start making your payments on time. Try to pay off some of your other credit accounts to lower your debt-to-income ratio. This will increase your credit score and give you something to negotiate with. Stop using your credit cards, or at least decrease how much you use them. Allow your payments to start lowering your balance as opposed to simply trying to pay for the purchases you made the previous month.
After six months of good credit habits, call your credit card company and tell them you would like your interest rate lowered. With a strong credit rating and your recent history of good credit habits, they will see that you have options as to where to have your credit account. If they feel you can move your business to another company, they will work with you on lowering your interest rate. Getting a lower interest rate can lower your monthly payments, lower your overall credit debt, and make it easier for you to pay off your credit card debt.
Transfer Your Balance
If you have decent credit then you may be receiving offers in the mail that say you can transfer your existing credit card balance to a new credit account for a lower interest rate. Do not dismiss these offers as this may be an excellent way for you to begin to get your credit card debt under control. Read the offer and call the company if you have any questions. In many cases a new credit card company will offer you the ability to transfer balances and then have no interest added to a transferred balance. This means that your high interest rates on your other cards will be eliminated, and this can lower your overall credit card debt significantly. Make sure that the offer you are getting is a zero interest rate for a transferred balance offer, and then negotiate the balance you need to transfer all of your credit card accounts to the new one. Transfer your existing balances, and then cut up your old credit cards and send letters to your credit companies telling them to close your accounts. When the new card arrives, cut it up and then pay off your credit card debt with no interest.
Pay On Time and More Than Minimum
Most credit card companies will set you up with a minimum payment that insures that you will be making payments to them for many years before you pay off the balance. The credit card companies want your interest and service charge payments each month, and they will allow you to make minimum payments for as long as you like. Pay more than your minimum payments each month, and focus on one credit card at a time to pay off by using extra money. If you focus your extra money on one card at a time, you will be able to pay off your card while still paying the minimum payments on your other cards. Minimum payments help to lower your balance, just so long as you do not use the card while only making those minimum payments.
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