Every one of us has credit card debt, but when do we know that it’s spiraling out of control and that we need credit card debt management? Well, one way is if you’re paying more than 15% of your monthly salary to your credit card bills then start to worry. But a worse way of dealing with this is borrowing cash from one credit card to pay another, this will only put you into more debt.
If a light comes on in your head after reading the start of this article then it’s time to sit up and take some action. Don’t think for a minute you are the only one dealing with credit card debt. Almost 40% of credit card holders are in this situation. I will tell you minimum payments. Yep, minimum payments.
If you only pay the minimum payment on your monthly balance, what once was a small credit card bill will turn into a very costly one. You’ll end up paying back thousands, and will take years to clear. Fortunately, this self-help credit card debt management can help.
Do It Yourself Credit Card Debt Management
Well if you have more than one credit card and you pay the minimum payment on them all, then this is what to do.
1. Pay off your debts using the Debt Avalanche method. Get the credit card with the highest APR and pay the most to this card, keep paying the minimum payment to the rest of your cards. Clear the credit card with the highest APR. Go on to the next highest APR and so on until you pay off all the credit card debt.
2. Transfer your balances to a 0% or low-interest credit card. Another way to help is balance transfer deals. Try switching your card with one that has this on offer. It’s a great way to save some money if they offer 0% interest free period for 6-9 months.
3. Stop charging your credit card. If you have only one credit card try not to use your card. But if that’s not possible watch what you spend. You’ll be amazed at the silly things you put on your credit card, including groceries and night’s-out. Even though that a credit card is handy don’t use it all the time. Just check what you spend for a few months and you will see the difference.
I know these things sound easy but it’s amazing how many people just use their plastic card to pay for everything, and really when you sit down and think it really is just common sense, hopefully following these simple steps you will be able to manage your credit card debt and get back on track.
Get more comprehensive credit card debt management and get out of your debt in no time.