Easy Steps You Can Take To Rid Yourself of Credit Cards
If there is one generalization we can all make about credit cards, it’s that we all start out with the best of intentions. No one tries to get into horrible credit card debt. For most of us, it just happens. For some, it was an emergency or a sudden illness that sent them down the spiral towards credit card debt, for others, it was a holiday shopping season that got a bit out of control. But regardless of your own personal reasons, there are things we can do to throw off the yolk of credit cards once and for all. There are no easy answers, but if you make a plan and stick to it, you can be credit card free.
The first step is the easiest. You need to get organized and come up with a plan of action. For some people who are buried up to their noses in credit card debt, it can be easy to let the newly arrived bills just sit on the table unopened, since you know you won’t be able to pay them anyway. But ignoring the problem will not make it any better. Sit down and make a list of every card you own, the interest rate and the balance. Make sure you make a special note if you have a card that is currently on an introductory rate that is headed for a chance in the near future.
Once you have your entire debt laid out in front of you, its time to choose which cards get the most money. The smartest thing to do is to put as much money as you can towards the card that is costing you the most, while you stick to the minimums on the others. Of course, this is easier said then done, if you had “extra money” lying around that you could put towards card payments, well, you would be doing it already! That’s why you might have to reevaluate your entire budget so you can redirect some money towards your cards. In times like these, sacrifices need to be made.
The next step is easily the most fun of this process. Blackmail and lying are two things that we’re told from day one aren’t the type of things that nice people do, but when you are dealing with credit card companies, it is time to play hardball. See that 1-800 number on the back of your highest balance and interest credit card? Call it, and tell the nice lady or man who picks up that you have been getting flooded with low interest credit card offers and that if they don’t lower your interest rate and the terms of your card, well, you might just be forced to take your business else ware. Now, this does not always work, of course, but you would be surprised at how motivated credit card companies often become if they think they might be losing you as a customer. Of course, you might want to phrase this little exchange a little better, but you get the idea. You might be able to save yourself thousands of dollars with a single phone call.
While there is no quick route to getting out of credit card debt, a planned and common sense approach often works. It is all about discipline and hard work, but you can live a credit card free life!
It is the goal of millions of Americans out there who are fed up with credit cards ruining their lives: to rid themselves once and for all of the burden of credit card debt. The process isn’t easy, however and there are no quick fixes. You can, of course, just declare bankruptcy but most people don’t want a big black eye on their credit for years and years to come. So, what can you do? In the first part of this article, we got the ball rolling with a few common sense tips like getting organized, and deciding how to attack the card that is doing the most damage. We also talked about how you can confront the credit card company who is hurting you the most to try to get a lower interest rate and better terms. Let’s now take a look at some more steps we can take to dig ourselves out of the credit card hole forever!
The next step to getting out of credit card debt is all about choices. Even if you are buried in debt and your credit rating is nothing to brag about, chances are, you get more than your fair share of offers from other credit card companies promising you low rates and enticing terms. A good tip is to take all of these offers and lay them out side by side. You’ll probably be better off flipping the offers over so you can see the disclosures that really tell you what it is that you’re getting. Most of these cards offer a great interest rate, most likely much less than what you are paying now, but the rates don’t last very long. Compare the offers you get to see which one has the lowest rate now, and which one has the lowest rate in the future and see if you can transfer some of your highest balances to that card.
Another good tip is to not cancel out the old, high rate card once you do make the switch. By canceling out a credit line, your credit report shows that you are suddenly using a much higher percentage of your available credit and this will cause your overall credit score to plummet. This can significantly hurt your chances of getting even lower rate card offers in the future.
And speaking of your credit score, keeping an eye on it is another big part of getting out of debt. Credit bureaus are run by people, and as long as this axiom holds true, mistakes will be made by those people. You can get a copy of your credit report to see if there are any errors or mis-reported problems and then get those mistakes removed. Consider it spring cleaning for your credit report. You’ll notice the difference right away, even if the mistakes only raise your score 20 or 30 points. You’ll start getting better card offers within weeks, and that can help your overall debt load a ton.
Finally, one of the biggest scams in the credit card industry is fees. Companies have a fee for this and a fee for that. Some of the worst are late-payment fees and over limit fees. The late payment fees can be the worst since some card companies can raise your rate all the way to 23.9 percent if you have a payment that is only a single day late. Don’t ever be late with a payment.
Getting out of credit card debt is not an easy process and it is something that is going to take dedication and hard work, but together and with a heavy dose of common sense, you can do it!