In this current economy many people face the challenge of credit card debt piling up around them. This can cause damage to your credit, stress on you and your family and an unwelcome burden of bills piling higher and higher. Because the salaries most people get have not kept up with the rising cost of living, credit card debt is even higher than ever before. How can you take control and stop the vicious cycle that you have gotten into with your credit card? There are a few ways to take handle of your situation and make it a manageable problem. You can take control and easily see your debt start to reduce when you set your mind to it. Here are a few tips to take charge of your credit card debt.
Put Down The Card
First you need to stop spending money on your credit cards. This does not mean you have to cut the cards up or close the accounts. Closing accounts looks bad on your credit score. You simply need to start getting into the mind frame of cash or nothing. This will help you to stop adding debt to your already rising balance. You can easily place the cards in a safe-box at home or you can freeze them in water to keep them from being easily assessable. This will cause you to stop and really consider do you need the item you were going to buy. If you can’t buy it with cash, you may not need it right then. There are some exceptions such as car repairs or emergencies. You truly have to consider whether you are spending money for an emergency purchase or because you want to.
Take a hard look at your cards and see which one has the highest interest rates. Those cards would not be ones you want to use often and they would be ones you need to pay off first. The more the interest rate is the more you will pay for that one purchase you made on impulse. Organize your statements and determine which ones you need to tackle first.
Pay off your smallest card first. Make the minimum payments on the other cards but really double up on payments to the lowest balance one first. This will give you a sense of accomplishment once you have paid it off. You can see just how much it cost you and how easy it is to say no when you have cleared one of your debts. Once you pay off the smaller one, start working on the next smallest one. Continue doing so and you will have paid off your debt before you know it.
You can also consider credit counseling if the debt is just too high for you to handle. A great company will get your payments into one easily managed payment and you will be paying off all your cards. This will help you to get the debt down and you will have one payment a month to make.
If you are struggling with debt remember that you can get it under control. Stop using the cards and start paying down the small ones. You can even work with a company to manage your debt and get it under control. You can do this and you will see your debt be under control!