How to Get Rid of Credit Card Debt
The level of your credit card debt can often creep on you. It is a common scenario. A purchase here, a bill paid there, and before you know it the balance owing has blown out. Then you find yourself with high interest charges on top of the balance owing and it has become difficult just to make the minimum monthly payments. So let’s look at how you can get rid of credit card debt.
Things may look hopeless and the stress of debt can weigh you down. Not being in control of your finances can make you feel powerless. But there is a way out; in fact there are a few ways that you can get rid of credit card debt and regain financial control.
Wouldn’t it be worth it to get rid of unmanageable credit card debt so you can live a financially stable and sustainable life? Imagine not having to worry about your bills or getting harassing calls from creditors.
Here’s a Few Tactics For You to Consider
The first step is to acknowledge the problem and the second is to make a mental commitment to fix it. A failure to acknowledge credit card debt often makes the problem worse and makes it harder, in the long run, to fix. By accepting and facing the problem, you are more likely to be able to plan for repair and take the actions necessary to gain financial freedom.
It is a good idea to talk to your credit card provider to see if you can rearrange some of your finances or get a lower interest charging credit card. If you have multiple cards with multiple creditors, this may not be so easy. So make a list of who you owe the money to, how much in total for each and how much you are paying off each month. It is also a good idea to work out the amount of your monthly payments that is going towards interest charges. That way you will know how you can save by taking alternative actions.
Use Budgeting to Help With Spending Decisions
Drawing up a budget of your income and expenditure will also help you be certain of how much you can afford to pay each month, after all essential spending has been accounted for. When you are drawing up your budget, don’t forget to include bills that only come in every few months such as car registration, electricity, insurance and rates. These bills can be quite large and can really blow out your budget.
Consider Consolidating Your Debts
Depending on your particular situation you could consider consolidating all of your credit card debt into one personal loan, paying less interest on the overall amount. Alternatively, you could roll all of your current card debt into one card paying zero interest for the first 6 months. You will need to be disciplined though in making payments during that first 6-month introductory period.
If you have exhausted all of the options already mentioned, and you still find yourself unable to manage the level of debt, you could seek help from a debt management expert.
A Debt Agreement Helps As It Freezes Interest
A debt agreement freezes the interest on your balance owing and in some cases can reduce the amount that you have to pay overall. A debt agreement applies to unsecured debt, usually lasts for 3-5 years and for a person entering into a debt agreement it is a serious commitment.
There are companies that can help you negotiate with your creditors and set up a debt agreement. This is a government legislated agreement that you enter into with your creditors where you pay back a level of debt that you can afford over a specified time period. For example you could negotiate to pay back seventy per cent of the total amount owing, making a monthly payment over a 48-month period. This can make each payment easier for you to manage each month.
There are some eligibility limits that apply to debt agreements and there are serious consequences that will apply to your credit record. If you would like to know more about how a debt agreement may help you get rid of your credit card debt, you can call Xdebt today and talk to them about your options.
In summary, there are many ways to get rid of credit card debts. The methods you choose will depend on your circumstances. If you need help working out the best solution for your needs, please feel free to contact us. Don’t delay in getting rid of your credit card debt as it can quickly mount-up. Call us for a free consultation and see how we can help you.