Credit cards are a fact of financial life in America and all over the world, and with good reason. When used responsibly, a credit card opens up incredible opportunities, allowing us to expand our financial potential, get access to goods and services online that may not be available where we live, and enhance our life in many ways. Credit cards can even help with those unforeseen emergencies such as medical or dental treatment, and they allow us to live beyond our financial means, provided we handle that debt in a prudent manner.
But when the debts accumulate on a credit card, it’s just as easy for things to get out of control. That “buy now, pay later” mentality that makes credit cards so convenient is also a way for people to put aside their financial obligations for too long until the debt makes a severe impact on their life. All it takes is missing a few payments in a row to go from a magical ticket of financial convenience to a frightening mark on your financial record with debt collectors in pursuit.
But it is possible to manage this. And if you want to know how to reduce your credit card debt, we have a few tips.
Set a Budget
One of the best things you can do yourself if you’re not already is learn how to plan and follow a monthly budget. This is an essential life skill for managing your money wisely, and it can have a profound impact on your earnings, savings, and debt management. By looking at how much money you make, and seeing where and how you are spending it, you can make a much more informed decision about where to put that money every month and can start to see real opportunities to save and pay.
For example, if you’re on an expensive cable TV service, but don’t watch that much television anymore because of online services, you may want to consider downgrading your service, or even eliminating it, which frees up some money. If you notice you eat out at expensive restaurants frequently during the week, go out less. If you find you spend a lot of money buying items online, cut this down.
How to Reduce Credit Card Interest
It is the interest rates on credit cards which can make debt mount to alarming levels if you’re not paying attention. But while interest on credit cards is always going to be higher than something more substantial like a mortgage or car loan, that doesn’t mean that your credit card interest rates have to remain as high as they currently are.
You may not realize it, but in some cases, you’re in a position where you can lower your credit card interest rates simply by asking to do it. Under certain circumstances, you can negotiate with your credit card company over the interest rates you are paying. This is especially true in instances where competing companies may be offering lower interest rates that are much more competitive with what you’re currently paying. Credit card companies would like to keep your business, and if you decide to cancel a card with them and go to another company, that’s a lost customer.
Pay Off the High-Interest Rate Card First
If it’s the interest that is making the debt rise to uncomfortable levels, one strategy is to target the card that has the highest interest rate and, while still making minimum payments on the other cards, aggressively target that high-interest credit card to get it off your back. The best way to reduce credit card debt is to keep the interest in check, and while this definitely requires the use of some self-control to establish a budget, if you can systematically eliminate the problem interest rates from the equation, you are well on your way to regaining control.
If you have a sincere desire to dig yourself out of a debt hole, and you never want to be in it again, then maybe it’s time to go to the experts for professional help. A New You has been helping people for years to regain control of their financial lives and get out of debt. If you want to learn how to reduce credit card debt, we can help.
One of the most important things we will do is understand what your financial situation is, and help you to understand it. Different people will have different circumstances, and while some debt can be traced to a single unexpected expenditure, such as a medical bill, others are the result of multiple debts across different cards or an adjustment to spending habits.
We will customize a solution just for you and your situation. Whether it is, debt settlement or even a bankruptcy bankruptcy, there is always a solution to the debt problem. It’s just a question of what your situation is, and what steps you need to take. Contact the team at 855-501-6870 today or get a free quote to finally eliminate your debt.