Are you burdened with a hefty credit card debt? Thousands of Americans are facing credit card debt problems and filing for bankruptcy. If you think that bankruptcy is the only situation out of your debt problems, then wait! Read below to learn how you can keep debt problems at bay.
1) Don’t use too many credit cards: The point is simple; if you have a number of cards you simply increase your chances of overspending and inviting debt. Limit the number of cards that you carry and control your spending.
2) Opt for a low interest card: Be smart and transfer all your balance from a high interest rate to a low interest rate credit card. Merge all your credit card dues into a single payment so that it becomes easier for you to pay off your dues.
3) Budget: This is very important. You must keep a track of your spending and budget your expenses. If your spending exceeds your income, then you increase the chance of falling into debt manifold. Controlling your expenditure according to your income would make sure that you do not spend beyond what you can afford to.
4) Try to negotiate with your creditor: Most people think that negotiating with their creditor won’t turn out to be fruitful. Do not fall prey to your guessing game! The point is that you should at least try to crack a deal with your creditor. Show him that you are concerned and persuade him to lower the outstanding balance so that you can pay off your debt affordably.
5) Clear your dues with the high interest rate cards first: Make a list of your dues and the interest rate for the respective credit cards. Keep higher interest rates at the top and make a determination to pay them off first. This is done to ensure that you can stop the high interest rate card from piling up your dues all the more.
Keep these points in mind and you will be well on your way to fight away debt. The best thing to do is to stay away from the use of credit card wholly, this way you make sure that you limit your purchase with what is there in your wallet!