Will There Ever Be Credit Card Debt Relief?
It is too easy to fall into the credit card debt trap! You get a credit card for emergencies and concert tickets ONLY. Hey, you start off alright... you are paying off your balance every month and feeling pretty good about yourself. Then you find yourself using it more and more; when you go out to dinner, to fund that stylish new outfit and for all of those other 'special things' that you are used to denying yourself of.
It does not take too long before you cannot pay out the balance every month and then the interest starts to climb! Unfortunately, it is a scenario that we are all too familiar with! Of course, the banks know this better than anyone and will be first to jump at the opportunity to exploit the ordinary, everyday person's weakness.
Whether you are taking out a credit card for the first time or are looking to pay off your current debt, take a look at these simple concepts to help you towards credit card debt relief.
Here is a Good Tip: Spend Less from the Start
Have a look at your most recent credit card statement. What are you really spending your money on? Truthfully evaluate each item and decide whether it was a necessity or whether it was a luxury.
One of the traps of credit cards is that you do not really have to contemplate what you are spending your money on or how much it costs you - at the time! We do not look for the same bargains when we are not spending our own cash and also we are much more likely to spend on things we do not REALLY need.
The first step of good credit card debt management is to recognize this. Think about each purchase you make, how much is costs, and when you will be able to pay it off your credit card balance.
Do you REALLY need your Credit Card? Why not Cut Up Your Card?
If your debt is getting way out of control and you just cannot trust yourself with a credit card, you may want to consider getting rid of it as a way to finding credit card debt relief. Some companies will let you get rid of the card and gradually pay off the balance each month.
You may need to pay it out of your savings or even consider a personal loan. This is a great method of credit card debt relief. If you find a credit card an integral part of your life, ask your bank about reducing your limit.
Think about the maximum you would need each month and ask for that to be your card limit. If your bank refuses to do this do not be afraid to negotiate. Faced with the choice of lowering your limit or losing your business entirely, they will likely choose the former.
Perhaps Consider a Debt Consolidation Loan Instead...
You may already be in a position where you credit rating is bad and you are missing payments on your credit card. If this is the case, consider a bad credit debt consolidation loan. This is a loan secured against some kind of collateral, usually your home, and functions much like a personal loan does. Unsecured debt consolidation loans are available, but usually only to those with good credit.
So a bad credit debt consolidation loan would most likely only be available if it were secured. In any case, a secured loan can offer you a lower interest rate and fee structure than a secured loan!
If you do decide to pay out your credit card balance with a personal loan, ensure good credit card debt management by closing off your cards completely. This means not just cutting up your card, but also asking the bank to close the account. Make sure they send you notice in writing that the account is closed.
Many banks will tell you verbally that the account is closed, but actually leave it open. If you use your credit card online, you will likely have your number saved somewhere.
All of a sudden temptation has reappeared as you are able to still use your card online, even though the actual plastic is gone. Another trick that the banks like is to play is to tell you that your account is closed (but leave it open), and then as a convenient 'mistake' send you a new card a few months later.
DO NOT fall for this one either. The best thing to do is to cut the card up immediately and ask for written confirmation your account has been closed.
It does not take too long before you cannot pay out the balance every month and then the interest starts to climb! Unfortunately, it is a scenario that we are all too familiar with! Of course, the banks know this better than anyone and will be first to jump at the opportunity to exploit the ordinary, everyday person's weakness.
Whether you are taking out a credit card for the first time or are looking to pay off your current debt, take a look at these simple concepts to help you towards credit card debt relief.
Here is a Good Tip: Spend Less from the Start
Have a look at your most recent credit card statement. What are you really spending your money on? Truthfully evaluate each item and decide whether it was a necessity or whether it was a luxury.
One of the traps of credit cards is that you do not really have to contemplate what you are spending your money on or how much it costs you - at the time! We do not look for the same bargains when we are not spending our own cash and also we are much more likely to spend on things we do not REALLY need.
The first step of good credit card debt management is to recognize this. Think about each purchase you make, how much is costs, and when you will be able to pay it off your credit card balance.
Do you REALLY need your Credit Card? Why not Cut Up Your Card?
If your debt is getting way out of control and you just cannot trust yourself with a credit card, you may want to consider getting rid of it as a way to finding credit card debt relief. Some companies will let you get rid of the card and gradually pay off the balance each month.
You may need to pay it out of your savings or even consider a personal loan. This is a great method of credit card debt relief. If you find a credit card an integral part of your life, ask your bank about reducing your limit.
Think about the maximum you would need each month and ask for that to be your card limit. If your bank refuses to do this do not be afraid to negotiate. Faced with the choice of lowering your limit or losing your business entirely, they will likely choose the former.
Perhaps Consider a Debt Consolidation Loan Instead...
You may already be in a position where you credit rating is bad and you are missing payments on your credit card. If this is the case, consider a bad credit debt consolidation loan. This is a loan secured against some kind of collateral, usually your home, and functions much like a personal loan does. Unsecured debt consolidation loans are available, but usually only to those with good credit.
So a bad credit debt consolidation loan would most likely only be available if it were secured. In any case, a secured loan can offer you a lower interest rate and fee structure than a secured loan!
If you do decide to pay out your credit card balance with a personal loan, ensure good credit card debt management by closing off your cards completely. This means not just cutting up your card, but also asking the bank to close the account. Make sure they send you notice in writing that the account is closed.
Many banks will tell you verbally that the account is closed, but actually leave it open. If you use your credit card online, you will likely have your number saved somewhere.
All of a sudden temptation has reappeared as you are able to still use your card online, even though the actual plastic is gone. Another trick that the banks like is to play is to tell you that your account is closed (but leave it open), and then as a convenient 'mistake' send you a new card a few months later.
DO NOT fall for this one either. The best thing to do is to cut the card up immediately and ask for written confirmation your account has been closed.