Strategies to Eliminate Credit Card Debt

Whether you have recently noticed you have a climbing amount of credit card debt, or if you have been struggling with debt for years, clearing up and eliminating your debt can help to ease your financial future and rid the stress and worry you may feel about the debt you have as well. If you are feeling the temptation to apply for a credit card again, you may want to think twice

Understanding Your Current Financial Situation

Eliminating credit card debt requires an understanding of your full financial picture and your future goals as well. Gather all of your financial records and documents to ensure you understand just how much debt you owe. Also, request copies of all of your credit scores as well, which can be obtained free once per year if you are an American citizen. Getting a clear view of your financial situation can give you all of the direction you need to take the next step in clearing up your credit card debt.

Choose One Card to Start

When you want to eliminate the credit card debt you have to your name, you should start small to avoid overwhelming yourself or getting in over your head without the ability to pay off all of your debts at once. Instead, choose one card to stick with and attempt to call your creditors to begin making payments or setting up a proper payment plan for you.

Ask Creditors for Assistance

If your credit score is still in good standing and you only have debt on just one credit card, it may be possible to negotiate with your creditors to help with lowering your overall interest rate on the card itself. Although this is not always possible, asking will not hurt and may help to reduce your payments and the overall amount owed dramatically.

Transferring Your Debt Balance

In some cases, you are capable of transferring your credit card balance to a new credit card, often with a lower interest rate. However, if you choose to transfer the balance you owe to a new card it is also important to ensure you are able to pay off the entire balance within the introductory interest rate period, otherwise you may be stuck with paying substantially more in interest over time. The next card you open may be a low interest credit card if your rates now are scary.