Are you going through a hard financial situation, having multiple credit card balances to repay due to the constant stress and exhaustion that debt causes? You may want to know that you are not the only one going through something like this. In fact, it is exactly the opposite. In this article, you may be able to find answers to some of the questions which you may have asked yourself a thousand times.
Let’s talk about credit card debt
It is safe to say that credit card debt is terrorizing many American citizens. It has got to a point where people who do not carry credit card debt are considered to be some kind of exceptions. It may sound way too scary, but sadly this is the reality that we live in. A reality where many people are forced to manage multiple debt repayments while also trying to manage their regular monthly bills. And for those you do not take any action towards educating themselves on how to actually deal with all that debt, the future does not look so bright.
What has led to this credit card debt crisis?
It is hard to point a finger on a single factor. The real reason lies somewhere between the economic environment that we live in and people’s inability to manage their budgets in the best possible way. Still, with life being so expensive, it is really hard not to experience financial difficulties which can often lead to debt. For most people even paying their normal monthly bills can be a challenge. Even if you manage your budget to the best of your abilities, calculating every single expenses and income, life can still find a way to catch unprepared. Emergency expenses are always on the way and usually when they strike, many people are unable to deal with them without going into debt. Regardless of how you have found yourself carrying credit card debt, the important thing is to find debt relief.
How to pay off credit card debt?
There are different things you can do and different methods you can use in order to get rid of credit card debt. Here are some steps which you can follow:
Start making payments above the minimum
By making only minimal monthly payments on your credit card debts you are only taking care of the interest on these credit cards. In order to start getting rid of the actual credit card debt amount, you would need to go beyond that minimal payment limit so that you can start reducing your debt. Most credit card companies will not advise you to do that. This is of course quite understandable since the more time you spend making minimal monthly payments, the more money these companies are going to get. Get the details of your last credit card payments, see exactly how much you are paying on interest. That way you will know just how much to increase the amount of money for your next payment.
Try snowballing your credit card debt
If you want to speed up the repayment process of your credit card debt and want to build a momentum while doing it, it might be a good idea to try the snowballing credit card debt repayment method. In order to do that, you would need to make a list of all your debts – from the smallest debt to the largest one. Then you will need to start putting more money towards the smallest debt while making only minimal monthly payments to the rest of your debts. Once you have fully paid off the credit card with the smallest balance, repeat the same strategy with the smallest debt that follows and continue this method until you get rid of all your credit card debts one by one. By getting rid of the smallest credit card balances, you will free up enough funds to tackle the larger credit card balances with. In addition, with every small debt that you repay you will gain momentum and with that you will gain a level of confidence that will give you enough strength and motivation to go on until you reach your end goal. And that goal is, of course, to be free of debt once and for all.
Find a way to earn extra income
While using the snowballing method may definitely speed up the debt repayment process, you will need all the money that you can get in order to follow through with your strategy to the very end. Nowadays, there are many ways to earn some extra dollars for a few hours of your time, so make sure to put in the extra effort and get that extra cash so that you would be able to have enough funds and find yourself going into another debt while you are trying to repay the ones that you already have.
Sell all the stuff that you do not need
We all have things that we have somehow bought for no evident reason. Nowadays, it is quite easy to sell whatever you want as there are many sites where you can do that. Gather all the stuff that you do not need and try to sell them. When you are battling credit card debt, every dollar that you can get can make a difference.
Credit card debt relief
If you have tried different debt repayment methods and strategies and you are still in the same uncomfortable spot, you may want to consider a debt relief service. There are debt relief services like debt settlement and counseling that may really be your best shot. Whether you want to get a debt counseling in order to get valuable information on how to continue your battle with credit card debt, or use a debt settlement plan as a way to finally pay what you owe to all your creditors, you need to be prepared for a tough fight. Getting out of credit card debt is never easy.
There are many reliable credit counseling organizations that can provide you with really valuable information on how to manage your budget and your credit card debts. They can help you plan your budget in a way that will optimize your debt repayment process, as well as provide you with free workshops and different educational materials. What you should probably look for is a nonprofit counseling organization. Set up a meeting, see how it goes. If you are not pleased with the help that you are getting, you can always try a different counseling organization. It is important that you find a good counseling organization that can really help you.
Debt management plans
If you are in way too deep in debt, unable to keep up with your debt repayments and things are going only downhill, your credit counseling organization may advise you to use a debt management plan. A debt management plan is different from a credit counseling session and it is definitely not for everybody. It would probably be for the best if you do not sign any debt management plans on your own. Wait for a reliable credit counselor to review the situation first.