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Controlling Credit Card Debt

Controlling Credit Card DebtIf you’re currently struggling with high credit card debts, you might be wondering how you can get out of that trap. Credit cards aren’t inherently a bad thing. Though if you’re careless, they can be more trouble than they’re worth.

Stop Digging

When you’re stuck in a hole, the first thing to do is stop digging. Until you have control of your debt, stop adding more to it. You don’t need to cut up your credit card. But if you do use it, make sure you pay an amount beyond the minimum charge so that interest payments won’t increase.

Focus on One Card

For multiple card holders, it may be better not to pay off all cards at once. Choose one card for which you will pay the minimum plus a fixed amount, say $100 to $200. For the rest, simply pay off the minimum due. Some financial experts say to pay off the card with the highest interest. You could also start with the credit card that has the lowest balance. It will eliminate one debt quickly and give you a morale boost, encouraging you to stick with the plan.

Lower Interest Rate

To try and lower the interest you’re paying, call up your credit card provider and simply ask for a lower rate. If they rebuff you, don’t give up; you can call again later and hope you get a representative who’s willing to help you out. Alternatively, you can transfer the debt to another instrument. Signature loans at Utah Money Center, for instance, have lower rates than credit cards. If you live in Sandy, approach any bank you have a good working relationship with or a reputable loan provider.

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Once You Regain Control

Keep a record of your expenses to better track your credit card use. To stay ahead of credit card debt, try to limit your use to amounts you know you can easily pay off. Set a specific budget for your credit card expenses and discipline yourself so your credit card debt doesn’t spiral out of control again.

  • Posted on January 9, 2017