Nearly all Americans bear immoderate charge card debt. We have each discovered that the hard way. Only when it gets personal do we pay attention though, then it will start to drive you nuts.
Well, don’t jump to call the bankruptcy lawyer just yet. Most creditors are probably very willing to work with you. They would rather have you making a reduced payment versus no payment. So let’s see how we can deal with that credit card debt.
First, contact your credit card companies and give them an honest assessment of your situation. Ask for a lower interest rate and/or a longer repayment plan. It is a very good strategy to be courteous at all times when negotiating with your credit card companies. Polite, but firm, communicate as someone who is expecting to get what you want, but don’t be rude or confrontational. If you are uncomfortable or do not understand what you are asking for in the first place you might consider a reputable credit counseling service. There are many great, honest organizations, out there whose mission is to help you work things out with your creditors. Many will charge you no fee but will receive compensation from the credit card companies.
Next, you have to stop using your cards – this is necessary. Cut them up; throw them away, whatever you need to do to get them out of your wallet or purse, do it! You simply cannot keep adding to the problem by running the debt up any higher. This is actually one of the hardest parts of eliminating credit card debt. It’s like you’re addicted spending money this way. Psychologists say this is one of the major problems – we use cards and do not equate using them to spending money. Bite the bullet, kill the cards, and re-oriented your spending habits.
Logically, you should start paying the ones with the highest interest rate first and work from there. Concentrate on those high interest rate cards by paying more than the minimum balance each month. The minimum is designed to keep you on the hook paying the credit card company their high rate of interest anyway. They know if you take years to pay their profit will continue to go up – sometimes you are actually paying interest on interest, further multiplying their profits. Even a little extra each month makes a big difference in the end.
Remember, you are not alone; statics show us that 20-30% of all Americans are over extended with their credit cards. Buckle down, work at this, and in the end you will be able to live a more comfortable life without all the anxiety.
