Reducing your credit card debt is not as difficult as
you may think. It takes a mix of inspiration, creativity and vigilance
to bring that balance under control. Remember, it took you time to get
this far into debt and it will take you time to get out of it. Below
are some helpful strategies to employ when trying to eliminate consumer
debt.
1. Stop Using Your Credit Cards In order to climb
out of the financial hole that you have created for yourself, you need
to restrict spending. Take the plastic out of your wallet or your purse
and put it somewhere for safe keeping. Limiting your spending will not
get you out of the red, but it will keep you from increasing your bills.
2. Pay More than the Minimum Only
making the minimum payments is what some gurus refer to as "financial
slavery." You become the hamster running tirelessly on the wheel, but
you never are allowed to get off. In fact, if you increase your monthly
payments by $50, $75, or $100 you could potentially reduce the life of
the debt by years. Additionally, you will save thousands
and--sometimes--tens of thousands of dollars over the life of this
high-interest loan.
3. Negotiate Your APR Keep in mind that you are the customer. These companies need
your business. If you have paid your bills on time and are not over
your credit limit, you should try to lower your annual percentage rate
(APR). This could result in saving hundreds of dollars a year (which,
in turn, turns into thousands of dollars over the life of the balance).
If you can't lower your APR on the first try, do not give up. Try this
tactic every couple of weeks. Also, be aware of other APRs that are out
there from different companies and use this as a negotiating tactic.
Taking
the steps to get out of debt takes a higher level of vigilance. It was
easy to find yourself so far in debt. It is extremely difficult to
climb completely out of it.
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