If you are looking at your credit card bill and you are wondering how it got to that amount, you can thank the interest rate, finance charges and other card fees for that. But regardless of what is in that amount, one thing’s for sure, you need to do something about this immediately. The longer you wait, the bigger your debt will become.
But before you can tackle your debt payments, you need to stop acquiring more debt. Cut up your high interest cards or keep them in a storage place that is hard to access. Do everything to keep yourself from using it again. And once you have paid it off, close the account and just settle for your low interest rate cards (at least if you have to maintain one).
Now to help with your debt payments you have to deal with the high interest rate first. It will be very difficult for you to put a huge dent on your debts if you cannot lower it. There are various ways to lower your interest rate and here are some options.
One is to ask your credit card company if you can get a reprieve from the high rate. If you have a good track record with the card company and you can convince them that this request is born out of a recent financial tragedy, then they may agree. It wouldn’t hurt to try to ask.
Balance transferring is also another option that you can use. You can get an existing card and transfer the balance of the card with the higher interest rate. Or you can get a zero interest card that will give you at least 6 months of zero interest benefits. Of course, you have to pay a certain fee to be able to transfer balances – it is usually a percentage of the amount that you plan to move. When you opt for this, you should try to make significant payments during the months that you have zero interest. Once the introductory period is over, you may be faced with another high interest debt.
Another debt relief option is debt consolidation loans. You can get a big loan that will allow you to pay off your high interest cards. This is only work if you are qualified to receive a low interest on your loan. This can be done if you either have a high credit score or a collateral for a secured loan. Otherwise, you need to get another option that will help you pay off your high interest rate card debt.
Of course, paying off your high interest card debt is only one part of the equation. Ultimately, you need to take a peek at how you manage your debts. If you got yourself into so much debt troubles then there is obviously something wrong with how you are managing your finances. Deal with this problem so you can be assured that you will stay out of debt for a long time.