Credit card debt doesn't become
a problem overnight. Carrying balances on a number of credit
cards simultaneously creates an illusion of a manageable situation.
Credit cards can make it seem easy to buy expensive things when
you don’t
have the cash in your pocket, or in the bank.
If credit card debt has become a problem for you, the smartest
thing to do is stop charging and pay off
the credit card debt.
The No. 1 rule is: Pay off your balance every month. Making only
minimum payments means that you pay two or three times the amount
you originally charged in interest fees alone. The best way to
get rid of debt, experts agree, is to attack the balance with
the highest annual percentage rate first. This way you can save
money. Paying off several thousand dollars or more in credit
card debt takes time, so you must discipline yourself.
Creditors are willing to participate in debt
settlement negotiation hoping that
they can avoid the expense of turning the accounts over to
a collection agency. Once you establish a payment plan with
a credit card bill, stick with the payments until it's gone.
RESOURCES: Pay Off Credit Card Debt
FTC Bureau
of Consumer Protection - Consumer Information: Credit & Loans
Credit Report
and Score Information from Experian.com
TransUnion
- Check Your Credit Report and Credit Score Online, Instantly
and Securely
Equifax
Products: Credit Reports, Credit Scores & Identity Theft
Protection
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Personal Finance
Money Tip: Be frugal and buy a used car. The most expensive
miles on a car are the first 10,000. Let someone else drive
those for you. Buying used can save a lot of money considering
how little value the car has actually lost. |
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