Some Tips On Credit Card Debt Reduction
If you are the average American then you have probably 5 or 6 credit cards, all maxed out, and carrying anywhere from $5,000 to $10,000 in monthly revolving debt on your cards. It is a big hole you have dug and credit is just like weight loss. It is so much easier to gain weight than it is to lose it and the same can be said of credit. It so much easier to run up a balance than it is to get it under control.
There are little tips and tricks you can use for credit card debt reduction that will help you try to get your mess under control but remember that these tricks are temporary and you should probably think about really focusing on seriously eliminating your credit card debt altogether. But here are some tips on credit card debt reduction.
Negotiate Your Interest Rate
Interest rates are arbitrary numbers that the credit card company came up with, put in big print to make it look official, and now tells you that you have to pay it. The first thing you should do in your attempt at credit card debt reduction is to call your credit card company and tell them you don't want to pay that interest rate any more. It sounds so insanely simple but the worst they can say is no.
If you are paying 20% or more then call up your credit card company and tell them you are doing some credit card debt reduction and you received an offer from another credit card to pay off your debt with your existing card at 12%. So tell your credit card company that all they need to do to keep you is lower your interest rate to 12% per month.
They may try to negotiate and if you really do have one of those "transfer your balance" offers then stand strong on your percentage. If you are bluffing then settle for whatever they offer but that can be your first step towards credit card debt reduction. Less interest to pay means more of your payment goes towards principle and that is what you trying to do.
Pay More Than Your Minimum
Credit card monthly payments are tied to how much your existing balance is. If you lower that balance then you lower your payments every month. Once again it seems simple but it is effective credit card debt reduction that can help you save money every month. Use cash if you can and avoid using your card. Pay it down so that your debt is reduced and your monthly payment is also lower. It seems simple and many of these credit card debt reduction tips are very simple but if you use a little discipline then you can save yourself a lot of money down the road.
