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Tips And Tricks For Reducing Your Credit Card Debt

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With the economic crises we have been through in the last few years, many people have maxed out their credit. While this may have seemed like a good temporary way to cope with unemployment and the inability to pay bills, it is a never ending cycle that can make your recovery far worse. Here are some pointers for reducing your credit card debt.

Call the Debtors.
First of all, call each credit card company. Tell them your situation, and ask them if they will work with you. Believe it or not, most credit card companies will help you to get back on top of your debt. In some cases, they will completely eliminate further interest payments and charges. This will allow all of your payment to go straight to principle. The credit card company may not eliminate your interest, but they may be willing to reduce the interest rate. This, too, can help. You may also be able to get them to give you a fresh start by counting your account as caught up. This will eliminate the monthly late fees that inflate your balance. It will also give you a chance to remain current with payments. Credit repair begins with the moment you start making regular payments. This is strategy that is used by credit repair companies every day. They just may be more efficient than you in dealing with the big banks.

Debt Stack Your Payments.
Once you get a little bit of extra money, put it all on one credit card. If you’ll focus on the card with the smallest balance, and put all of your extra money on it, you’ll pay it off much more quickly. So, that birthday or Christmas money, and your income tax refund, will pay dividends when you put them on your credit card. Once that credit card is paid off, put all of that money on the next card. By snowballing your credit card payments, you can actually eliminate your debt very quickly.

Pay The Interest, Too.
The minimum payment on your credit cards is just that – the minimum. If you look closely at your statement, you’ll find that sometimes the minimum payment doesn’t even cover the interest that has been charged to your card that month! The best thing to do is pay the minimum payment plus interest. This will begin to make a noticeable difference in your balance.

Keep It Up.
Have you ever noticed that, when you make a big payment on a credit card, your minimum payment drops significantly? It is in these cases in which the minimum will be less than the interest. The credit card company has no interest in you paying off your card. So, paying a large amount on a different card each month won’t make a big difference overall. It’s the debt stacking effect that you need on one card in particular that will bring about the best results.