How to keep the stress of monthly credit card debt payments at bay

Rising costs of living and topsy-turvy global economy have made millions of Americans to put daily essential expenses and even outstanding debt repayments including mortgage and credit card debt on hold. However, this can’t be a stable solution to one’s financial problems. In fact, this may result in enduring delinquent debts which are likely to grow with pre-set interests over time. Paying a lump sum can just make a dent in the debts; so it’s better to pay off the debts systematically. If you’re in knee-deep credit card debt, you must bring some changes in your behavior and also change your perspective towards paying off the debt.

Strategies to pay off credit card debt

In order to pay off outstanding credit card debt with less effort, you should maintain a system and follow some strategies. Here are the strategies that you can follow to get rid of credit card debt without stressing yourself.

Create a strict budget – Owing debts is like putting calories. If you put more calories than what you need, it will result in over-weight or obesity. Similarly if you owe more debts than what you can afford, it will result in delinquent debts. So don’t spend more money than what you make, otherwise it will enhance your debt burden. Debt is insidious; the worst thing about owing a debt is that it keeps growing. Even after getting the numbers in balance, you will find that the outstanding debt amount is still much more than what you actually owed. To avoid such a situation, you should shed your debt. Spending judiciously is the only way to shed outstanding credit card debt as well as other debts. You must adopt the tricks of being frugal. Create a strict budget and follow it religiously. Don’t spend for anything which is not necessary for you right now. You need to avoid being extravagant. On the other hand, you can also shed existing debts by earning more, but this is not always possible. However, if you can do it, spend the additional dollars you earn for paying off the debts.

Use cash or debit card – Instead of using credit card, start using a debit card in order to cut down credit card debt balance. It would also help you to prevent accruing more debt along with more interests on your credit card. If you keep using your credit card whenever you go for shopping you may not be able to reduce the debt balance. Moreover, you will be deeper down in debts. Therefore, you must try to use hard cash or a debit card while shopping.

Renegotiate with your creditor – If you fail to reduce your debt balance even after following strict budget and using credit card judiciously, you can contact with your credit card provider. Ask them politely to offer you a new deal with lower interest rate on outstanding balance. If you’re an old and loyal customer of the company with good repayment history, they may consider your proposal. Credit card companies know that if they don’t provide their customers with better deals, the customers may switch to another company for better deal and transfer the balance to the new credit card issued by the new company.

File for bankruptcy – If you still owe huge amount of debt even after trying all potential debt-reducing strategies, as the last haven, file for bankruptcy. Filing for bankruptcy is a lengthy and difficult process. Moreover, it will reveal your financial situation. So if you have no problem with that, then you can file for bankruptcy. However, you must talk to an experienced bankruptcy attorney before making any final decision.

Credit card debts can literally ruin a person’s financial life. The sooner you get yourself out of this debt-web, the better.

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