Credit Card Debt Relief: Ready, Aim, Fire!
For a financial nerd like myself, there is little more exciting and reassuring than seeing a massive mound of debt disappearing. In our instant gratification society, the patience and dedication required to achieve this is virtually unheard of. In fact, it’s much more in keeping with the culture to swipe the plastic and get whatever we want instantly.
Credit certainly has its place, but when abused - and many do abuse it - you will find your suffocating self wanting out, and fast.
Here’s how:
Make a plan. Identify on paper where your main expenses are. If it is things like dining out, traveling or shopping, those are easy to fix. It will require that ugly word: self-control.
If your debt-to-income ratio is simply too high, allowing only a little extra in the budget for basic life necessities, that is a disaster waiting to happen. Pick up an extra job, sell something big or do whatever you have to do to open up a little breathing room. Do it yesterday, because life will throw you curves and you want to be ready.
Know your interest rate on all loans and credit cards. Try to negotiate a lower rate, particularly if you are a longtime customer who has paid on time. If they don’t work with you, threaten to transfer the balance to their competitor’s low-interest intro offer. You know you get a dozen of those credit card offers each day. It may just be time to use one.
Try to pay more than just the minimum if at all possible, even if it’s just one card. It is ultimately important to keep paying at least the minimum on all your debts. You should also try very hard to save up a financial cushion of at least $500 to $1,000. It will not only help you in time of emergency need, it will also offer psychological reassurance as you battle your mound of debt.
Debt in this country is at epidemic proportions. You are not alone, but you can manage credit card debt. It is by no means a pleasant, quick or easy process, but it can be done — and when it is, be sure to proceed with caution in all your future credit dealings. Don’t abuse it!
