Posted on: 10th Nov, 2009 01:28 am
Are you being constantly harassed by your creditors because of your credit card debts? If so, then you should note that it's possible for everyone to manage and control such debts provided we put in our sincere efforts.
Check out the following tips to manage your credit card debts:
Handle your creditors smartly: Don't run away from your creditors as it would make the situation worse. If you receive a call from your creditors, let them know about your financial crisis and inform them that you want to get out of this debt trap. If they know that you want to sort out the issues, they may come up with a repayment plan. This will in turn help you paying off your debts in a affordable way.
Set a budget: In the beginning of the month, make a budget and try to stick to it. Try and keep a tab on every dollar that you spend (I know it's difficult but you can always try, isn't it?). Once you make this a habit, you would be able to save money and use it to lower your credit card debts. Thus, it would slowly help you in getting rid of those debts.
Pay off the dues on time: If you pay off the dues on time, you will not be charged any late fees. Thus, you won't have to pay anything extra to your creditor. You can set up automatic payment plans in order to avoid the late payments.
Check out the following tips to manage your credit card debts:
Handle your creditors smartly: Don't run away from your creditors as it would make the situation worse. If you receive a call from your creditors, let them know about your financial crisis and inform them that you want to get out of this debt trap. If they know that you want to sort out the issues, they may come up with a repayment plan. This will in turn help you paying off your debts in a affordable way.
Set a budget: In the beginning of the month, make a budget and try to stick to it. Try and keep a tab on every dollar that you spend (I know it's difficult but you can always try, isn't it?). Once you make this a habit, you would be able to save money and use it to lower your credit card debts. Thus, it would slowly help you in getting rid of those debts.
Pay off the dues on time: If you pay off the dues on time, you will not be charged any late fees. Thus, you won't have to pay anything extra to your creditor. You can set up automatic payment plans in order to avoid the late payments.
I just want to let everyone know of how my grandma used to use her credit cards they had really good credit before my grandfather passed away, and how they did it was once they used one of their credit cards to lets say 50% of their balance they put it away until they paid off the balance, and alas it worked they had excellent credit for almost 50 years. For those of you who have more than one card this might help. :o)
Ahmed thanks so much for advertising here. Keep in mind though that it's a violation of the community's guidelines.
Tips For Paying Off Credit Card Debt:-
-Make a budget.
-Search out the ways to reduce spending.
- Pay more than the minimum payments
- Transfer balances.
-Make a budget.
-Search out the ways to reduce spending.
- Pay more than the minimum payments
- Transfer balances.
Most people cringe when they hear the word "budget". They immediately begin thinking about a strict set of rules that won't allow them to have any fun, and so most people avoid even thinking about it.
I don't like budgets. I usually spend to this is no more in the account. But I have taken this into account.
The way that I control my credit cards is that I have several bank accounts. One holds my monthly bills and the other is my credit card account. When I go make a purchase on a credit card that day, I go online and transfer that amount (rounded to next whole dollars) to my credit card bank account. When the credit card bills are due, I have the money to pay for them.
For me, the benefit is that whatever money is in my personal account is for spending and I have the security of knowing my credit card bills will get paid.
The way that I control my credit cards is that I have several bank accounts. One holds my monthly bills and the other is my credit card account. When I go make a purchase on a credit card that day, I go online and transfer that amount (rounded to next whole dollars) to my credit card bank account. When the credit card bills are due, I have the money to pay for them.
For me, the benefit is that whatever money is in my personal account is for spending and I have the security of knowing my credit card bills will get paid.
Whatever works for you Chris is what works for you, of course. Yours does sound like a good method by which to track your bills and to pay for any charges you've made during the course of a month also.
I was reading some of the posts here and I have seen some good recommendations regarding handling credit cards. My personal blog shows some of my successes and failures, and ways I navigated through them. Feel free to check it out in the link below.
As I posted recently on my blog, here are some credit tips for multiple credit cards with varying rates of interest:
1. Take all of your cards and order them from highest interest rate to lowest.
2. Allocate enough money to pay the minimum payments on all cards.
3. Any leftover funds you can allocate should be placed solely on the highest rate card to overpay and pay
it off fast. Once it's paid off, move all of those leftover funds to pay off the second highest, then the third, etc.
Follow this plan and you will get the highest interest rate cards paid off in the fastest time, and maintain the others in the process so you do not have any negative credit reporting issues or delinquencies!
As I posted recently on my blog, here are some credit tips for multiple credit cards with varying rates of interest:
1. Take all of your cards and order them from highest interest rate to lowest.
2. Allocate enough money to pay the minimum payments on all cards.
3. Any leftover funds you can allocate should be placed solely on the highest rate card to overpay and pay
it off fast. Once it's paid off, move all of those leftover funds to pay off the second highest, then the third, etc.
Follow this plan and you will get the highest interest rate cards paid off in the fastest time, and maintain the others in the process so you do not have any negative credit reporting issues or delinquencies!
Everything you borrowed must be paid for the right time to avoid penalties. That is the basic for having a credit card.
No arguing with that post, is there?
Absolutely! No arguments :-)
Keep your balances under 40% of your limit. Set it at 35% just to be safe. THAT'S YOUR NEW LIMIT. Buy things with your credit cards that you normally would with cash/check/debit and pay your card off every month.
AVAILABLE CREDIT IS NOT A RAISE IN PAY.
Your credit cards already have a payment plan associated with them, but is that plan designed to help you pay off your debt quickly?
Use this calculator and you tell me
http://www.mortgagefit.com/calculators/debtrepayment-period.html
You can contact your creditor to set up a repayment plan or you can design one on your own. There's been a lot of good suggestions here, try them out!
Regardless, once those cards are all paid off and you're debt and stress free - For the love of god DO NOT CLOSE THE ACCOUNTS!!!
Closing revolving accounts will hurt your credit tremendously. Cut them up, freeze them, put them in a safe deposit box, just don't use them and keep your account open! Otherwise you might find that your 750 score went all the way down to a 619. (just an example)
AVAILABLE CREDIT IS NOT A RAISE IN PAY.
Your credit cards already have a payment plan associated with them, but is that plan designed to help you pay off your debt quickly?
Use this calculator and you tell me
http://www.mortgagefit.com/calculators/debtrepayment-period.html
You can contact your creditor to set up a repayment plan or you can design one on your own. There's been a lot of good suggestions here, try them out!
Regardless, once those cards are all paid off and you're debt and stress free - For the love of god DO NOT CLOSE THE ACCOUNTS!!!
Closing revolving accounts will hurt your credit tremendously. Cut them up, freeze them, put them in a safe deposit box, just don't use them and keep your account open! Otherwise you might find that your 750 score went all the way down to a 619. (just an example)
Great share Sara and the rest, really appreciate each and everyone of your responses. Here are my suggestions:
The first one is obvious, stop using your credit cards. This may seem like a silly thing to suggest, but the best way to get a handle on your spending is to only spend the cash you have - after you've paid your bills.
Second, consider consolidating your credit card debt onto one card or moving a balance from one card, to one with a lower interest rate. Some people are in a constant cycle of moving to the next 0% interest rate card. This can be a pain, but you'll save a lot of money and buy yourself more time to pay off the debt.
Third, start making double payments. If the calculated minimum payment is only on the accrued interest, then you need to make a double payment to hit the principle of the debt. By finally hitting the principle and discontinuing use of the card for purchases, you'll see that balance begin to drop.
Good Luck!
The first one is obvious, stop using your credit cards. This may seem like a silly thing to suggest, but the best way to get a handle on your spending is to only spend the cash you have - after you've paid your bills.
Second, consider consolidating your credit card debt onto one card or moving a balance from one card, to one with a lower interest rate. Some people are in a constant cycle of moving to the next 0% interest rate card. This can be a pain, but you'll save a lot of money and buy yourself more time to pay off the debt.
Third, start making double payments. If the calculated minimum payment is only on the accrued interest, then you need to make a double payment to hit the principle of the debt. By finally hitting the principle and discontinuing use of the card for purchases, you'll see that balance begin to drop.
Good Luck!
To manage credit card debt, it is important to deal with your creditors yourself. Going to meet them can be daunting and nerve-wracking but if you explain your financial situation and let them understand your intentions to pay them back, you will be surprised how helpful they can be in negotiating with you. In this way, they can offer you a different payment plan that will be more affordable for you. Also make it a point to budget during this period to ensure that you can pay off your debts and that you do not slack off with your renegotiated payment plans.
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