Credit card debt is a hole many of us have dug ourselves into. Whether buying that luxury vacation or a simple pair of shoes, the prices add up, and over time, you can have trouble actually seeing a way out. Sometimes, you have always made the payments you need, and then you have a family emergency or lose your job, and those minimum payments seem insurmountable. Now, the best thing to do is not to get in debt in the first place. But obviously enough, you need extra help at times. So how do you eliminate your credit card debt fast?
Keep Track Of All Of Your Spending
Many of us have a bad habit of not counting the spending as long as we have the money or credit to spend. But it's those $ 10 and $ 20 purchases that add up in the long run, even on credit, and you end up with a larger minimum payment, going over, being at your limit, and other things that will not actually give you a hand up. To get a smaller minimum payment, you have to have a smaller balance. So the more you keep track of your spending, the better idea you have of what is adding up, why you are not making end's meet when it looks like you should be able to, etc.
Cut Up Your Credit Cards
Getting rid of your card will remove the temptation (and ability) to use it for any more frivolous purchases. If you have the number remembered for online shopping, have the company change the number, and either way, cut up your credit cards. They are obviously doing more harm than good, and oftentimes while it is good to have an emergency credit card, many of us are not actually showing the responsibility that has to be associated with it. So the best thing to do is to live within your means and eliminate those cards all together.
How To Respond to Credit Card Company Threats
Although collection calls can be stressful, they are usually more bark than bite. The company may threaten to garnish your wages, they may start calling your friends and neighbors, they may even take quite a few illegal steps to trying to make you pay. But the worst thing to do when trying to get into debt is to tank your credit score and get into more debt. The worst thing is to lose the important things that you have. Only one company can actually garnish wages at any given time, and realistically, they are illegally to take the expense to take this step except in extreme cases. So pay your mortgage, buy your groceries, and cover your very essential needs first. And then make the minimum payments.
When Are Credit Card Consolidation Services Necessary?
There are many situations that would require debt consolidation- there is no cookie cutter scenario. In the past some have only used this as a last resort, and others have even gone bankrupt rather than using credit card debt consolidation services. But honestly speaking, it takes a smaller hit on your credit than bankruptcy, and many services can actually help you to take even more innovative and proactive approaches to eliminating your debt. They give you a smaller payment and other requirements in general.
What About Credit Card Consolidation Services Scams?
Like any other industry, there are scams out there. And when you sign a contract with a dishonest company, unfortunately they sometimes start taking money out of your accounts, but it is not actually going towards your debts. So the credit card companies are not getting their money, and very soon they will come after you. You have to be extremely careful about which company you decide to use. Research the companies you are interested in- many sites such as the Better Business Bureau can offer a look into the history of any given company. Using recommendations from a friend who trusts a company is another great way to make sure you avoid any scams.
How Will The Credit Card Companies Respond to Credit Card Debt Consolidation?
No company likes losing money, that is a given. Companies that lend money know that they will make the most if they collect on all of the interest that accrues on your account. So initially speaking, they may well try to discourage you from using a service that consolidates your debt, telling you about the scams other than the good companies that provide good credit card debt consolidation services. But when it comes right down to it, you have to do your own research, and these companies can not actually stop you from using consolidation services if you qualify. All in all, they would rather get some of their money from you rather than nothing at all- even if they have to settle for less than you owed.
Ultimately, the important thing is to get yourself out of credit card debt so that you can lower your stress levels and look to the future. Without credit card payments every month in the future, that is more money that can go toward major daily bills, that can go into savings, and that can go towards something other than wasted and high interest credit rates. Financial freedom is within reach if you are willing to control and track your spending and use some outside help.