The fact that you are reading this articles is a good indication that you are looking for advice on how to deal with your credit card debt. Also obvious is that you have come to the realization that there is a problem and you are now searching for a solution.
The bad news – there is no quick fix for this situation; the good news – it is fixable. Read on for some powerful, thought provoking ideas to help you get headed in the right direction to not only drastically lower your credit card debt, but also train yourself how not to let it happen again. Self-control is not the only way of handling this matter, sometimes it actually takes destroying the credit cards to disallow any further abuse or overuse of them.
Since you have already acknowledged the problem, you will need to organize all the information you have concerning your credit cards, such as the interest rates, the total amounts owed, and the minimum payments allowed. Keep this in a list form using a scale of highest interest rate to lowest interest rate. The highest being number one on the list. This is your game plan so to speak. Adhering to it strictly is the beginning of an excellent plan for recovery.
Before you make the following months’ payments, contact each creditor for each individual credit card, and cancel the accounts. By taking this step before you miss any payments and before the creditor is forced to either suspend or cancel your account, your credit ranking will rate a higher rating because you closed the account before any negative or disciplinary actions were taken.
After canceling the accounts, you need to discuss a lower interest rate and perhaps a lowering or ending of certain fees on the account. Explain to the creditor that you are planning on paying the debt off, but you are going to set up a payment plan, within reason, to your capability in respect to your finances, not one arranged by them. Maintain a professional attitude, and with a little luck they might agree to settle with you by way of an agreed settlement amount that is lower than the total debt.
Begin paying on the agreed payment plan in a timely fashion and pay as much as you are able to pay over the minimum payment. By increasing the amount, however small, you are knocking down the total little by little. Since every little bit counts, try reigning in your other spending habits. Search through your budget and put all available money to paying on the credit cards. It will be tight for a bit, and not having some of the comforts you are used to will be annoying, but consider it a lesson in tough love to yourself to teach you not to get into debt again.
With the completion of each card paid off, get rid of the credit cards – cut them up, put them through the garbage disposal, or whatever celebration plan comes to mind. Once they are paid off, you will realize you are able to live without them and life is much easier without an outrageous debt hanging over your head. Take it as a lesson well learned and do not repeat your previous mistakes.
Article By www.TheRichCollegeBoy.com
