The Quickest Way to Get Out of Credit Card Debt
Many consumers find themselves in credit card debt because they have no clue how to pay it off. Here is a basic guide to help you get out of credit card debt faster than ever before.
The first step in your quick recovery is to get a copy of your credit report.
You can do this free on the credit bureaus’ website. The information will include any inquiries made on your credit.
Next, do not make any impulse purchases. Do not make a purchase unless you know that you can pay it back and can do so within 30 days.
If you are in credit card debt, reduce it to one monthly payment per billing cycle. That way you have more time to work out an arrangement with your credit card company. You will also be less likely to get late payments, which often leads to a lot of calls from collectors.
Take advantage of the time it takes for your bills to get paid. Each bill should be paid at least two weeks before the due date. The longer the time it takes, the more chances there are that you will forget about your payment.
Avoid using the ATM. Because of the high fees that you pay for withdrawing cash, using the ATM for your transactions is a waste of money. Instead, purchase items online and pay through your credit card. This will save you a lot of money each month.
If you owe a balance on a credit card, make sure you dispute any unpaid charges on your credit report. This will stop creditors from reporting it as unpaid. They will see that you did, in fact, pay the bill.
Startmaking small payments to your creditors.
When you see a percentage increase in your minimum payment, follow it up with another payment. Soon you will have enough money to pay all of your bills, including your credit card debt.
You can increase your credit limit if you find that you cannot pay your credit card debt on time each month. To increase your credit limit, write to your creditors and ask for a higher limit. You can ask for a fifty percent increase in the amount of your credit line or more.
The credit card company will approve your request. Before you apply for a new credit card, shop around to find the best interest rate. Even though the interest rate is higher, you are likely to save money on your debt.
Do not close your credit card accounts or else you will only compound your problem of credit card debt.
- Keep paying your monthly bill until you no longer have any credit card debt outstanding. Then open up a new account.
- It may take some time to get out of credit card debt.
- In the meantime, you will need to be committed to paying off your debt and reducing it as much as possible.