Credit Card Debt Help to Lower the Stress Level
Credit card debt help is available when it becomes more and more distressing to carry such a burden of mounting interest that compounds the amount owed. Some see no end to the problem and may decide to file for bankruptcy. But really they should wait and study all the options open to them before throwing in the towel.
Don't blame yourself for the hole you are in because a lot of people are in the same predicament. You are not the only one to blame but the credit card companies should be held responsible as well. While it is true that you are at fault by being financially irresponsible, the credit card companies are equally to be blamed for the high interest rate and fees they apply to the account.
Credit card debt help will say that consolidation is one option. While it will not get one out of debt by itself, still it is better to pay off the debt rather than file for bankruptcy for this will stay on record for years to come. In contrast, working to paying it off will make the debt more manageable and get you on the road to living debt free. There has been a shift nowadays though that bankruptcy as an option has merits.
Trying to consolidate the credit card debt may not be the best route and it involves getting another loan to pay off several loans but this will be on a much lower interest rate than what one is probably currently paying. There is another advantage in this in the sense that it will involve paying one monthly payment instead of several.
One has to be careful though to make sure to check the new loan and the lender by making inquiries and reading all the fine print. Then ask questions about the interest rate not only what it is but whether it will be the same rate throughout the life of the loan or whether it will be variable. This is one credit card debt help that is wise to follow.
Read the terms and conditions and ask questions on any point therein that is not easily understood. Find out too what fees are involved and the total amount throughout the life of the loan. Find out if you will be able to refinance later without any penalty. Make them send you a letter outlining all the answers to the questions.
Then stop using the credit cards. Put them away in a safe place. Create a budget that will not make you spend beyond your means and pay cash for any purchase. Any credit card debt help will advise for you to stick to the payment schedule and you will soon find yourself debt free.
Here are some things to remember that every credit card help will tell us:
- Make your mind up to spend less than the income you make. If you cannot pay with cash now, then you probably cannot afford it.
- Differentiate between good and bad debt. Any debt with interest rate that is tax deductible is a good debt. So is any debt with interest rate of lower than 10% and will go up in value like a home which currently is not the case and a student loan because you are investing for the future.
- Get all the bills and write down the balance, interest rate, and the minimum amount due for each. Pay all the minimum and add as much money to this when making the monthly payment so that the balance will go down faster.
- Scrutinize the bill for which debt has expired. It depends on which state you live. There is a statute of limitation for debt which is sometimes as low as three years. Once a debt has expired you do not have to pay for it. Some collection agencies have been in trouble lately for collecting debts that have expired. The website below will take you to alerts on this but check with the state attorney general office whether there has been a change.
- Pick the bill that charges the highest interest rate and pay as much as you can to this account until it is paid in full.
- Among all the credit cards, pick two that incur the lowest rate and put them in a safe place to use for emergency purposes only like getting sick and such. Put away all others for good.
- Call the credit card company and ask for a lower interest rate. Tell them that's all you can pay. They usually agree because they lose money when what you owe goes into collection.
- Be careful that in the desire to pay off the credit card debt, mortgage payment and others may be neglected.
- Talk to others who will provide the emotional support and encouragement needed.
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