More and more people are having trouble with credit card debt. If you are reading this, then you are probably going through such financial trouble yourself and you want to find out exactly what your options are. If you are not struggling with credit card bills, or it is just starting to become an issue for you, you will find some useful information so that you can get ahead of the situation. First off, let’s talk about this type of financial obligation.
What is credit card debt?
It is safe to say that this particular type of financial obligation is the type that most people, especially in the U.S. are struggling with. Almost every adult nowadays is using a credit card for a number of different purchases and payments. Basically, every purchase that you make with your credit card can be considered as debt. However, since most people pay their balances monthly, these ‘amounts’ do not generate any interest, and therefore, they are not considered as debt. Once your credit card balance starts to generate interest, it becomes debt. Many people do not realize the mess that they are creating for themselves until it is too late. And let’s be honest, most credit card companies are not helping in such situations as they often advise their customers to only make minimum monthly payments on their balances. Which in reality gets them nowhere.
What is the statute of limitations?
All financial obligations that consumers carry, from medical bills to credit card balances have a certain limit of the number of years that the creditors are legally allowed to sue the consumer for payment. Once the statute of limitations on your financial obligations passes, the financial obligations that you are carrying are considered as ‘time barred’ and your creditors do not have the legal right to sue you anymore, however, that does not mean that they might not try. However, your obligation to repay that which you owe is going to stay in the books. That basically means that this information will be available for future creditors, and once they see it, it is going to be really hard for you to qualify for a new line of credit. If you manage to do so, it would probably be at the cost of a higher interest rate. Keep in mind that statutes of limitations are different in every state in America, and they are also different for the different types of financial obligations. There is one very important thing that you must understand, remember and never forget, that is that if the statute of limitations on your financial obligations has passed, and you make even a single payment on these debts, this may reset the clock on your financial obligations and revive your creditor’s ability to legally sue you.
How to know whether the statute of limitations period on your financial obligations has expired
The state law of the place where you live will generally determine the statute of limitations on specific financial obligation types, regardless of where you have incurred your financial obligations. There are states where credit card debts get time-barred after just three years, and there are states in which the same type of financial obligations gets time-barred in up to 10 years. However, there are creditors who add certain clauses to their credit agreements, choosing a specific state’s laws that will govern the terms of the contract regardless of the place where you are living.
Ultimately, to determine whether a certain financial obligation has passed its statute of limitations involves the reviewing of the type of this financial obligation and the statutes that are applicable in the specific case. If you are interested in finding out whether your financial obligations are past their statutes. It is better that you seek some professional legal assistance by hiring a debt attorney. If your credit card financial obligations are still within their statute of limitations you may as well find a way to pay them all off.
Paying off multiple credit card financial obligations
It is always better to take care of the problem as soon as possible, regardless of what that problem is. Credit card debt makes no exception. There are many different methods and tools that are available to those who are determined to get rid of their credit card financial obligations. If you have been struggling with such financial issues for a while now, there are probably things that you are doing wrong, so we are going to give you some tips that can help you improve your chances of paying off the money that you owe to your creditors as soon as possible.
3 tips for getting out of credit card debt
Sometimes the smallest of things make all the difference, so you should not overlook the details that may be stopping you from paying off your credit card financial obligations. Here are some tips that may help you:
Get rid of your bad financial habits
If you have been struggling with financial obligations for a while and still have not gotten any closer to getting rid of them, you are probably doing something wrong. In fact, the very reason that you are in such position indicates that you have possibly done a poor job at managing your finances for quite some time. The first thing that you need to do is to start tracking your every single expense. That way you will be well aware of exactly where does your money go to. By reviewing these expenses you would be able to set aside the right ones and the wrong ones, the expenses that you really need and the ones that are totally unnecessary. Once you get rid of all these unnecessary expenses, you will feel a massive positive impact on your financial life and on your financial obligations repayment process.
Stop making minimum payments
Most people are having trouble with paying off their credit card balances because they are only making minimum monthly payments on these balances. In most cases, this is because they have been advised to do so by their credit card companies. As you may have guessed, it is in your creditor’s best interest to keep you paying for as long as possible, and by making just minimum payments on your credit card balances this is exactly what is going to happen. By following this approach, you are mostly paying interest and you are almost not even touching your actual debts. What you need to do is to get the details of your last few payments and see the exact amount of money that you have been paying on interest. Then, for your next payment, you need to pay an amount that exceeds the amount of interest. That way, you will know for sure that you are reducing your overall financial obligations amount.
Get some additional income
Nowadays, there are many ways that you can earn some extra money for just a few hours a day. Get that extra gig and use the money that you make to boost your debt repayment process.