How to dig yourself out of credit card debt

With credit card debt on the increase seeking advice from a debt counsellor is a first approach to discharging the debt. Some people are seriously affected knowing that they owe large amounts of money and receipt of the monthly statement only adds to their discomfort. In extreme cases a person’s health may be put at risk.

Stress levels increase when the monthly payment decisions are made and it is at this point when one considers taking a loan to pay off the credit card account. This is false economy and, in fact, increases your liability.

The little gimmicks some companies use when advising indebtedness should also be considered with care. Where a company allows skipping a monthly payment or states a minimum amount payable, this must also be viewed carefully. By doing this the company eventually extract more money from the customer by charging interest for a longer period.

It is no use dealing with payments by using one card to pay off another. More money is paid back in the long run. There are a number of standards or ways that can be employed to alleviate the debt crisis.

Speak to the credit card company and request a lower repayment plan or schedule. Discuss a lower interest rate with them. Some banks and credit card companies are very flexible especially if they get the idea that changing the account to another institution might be an option. The banks make more money on a long term loan than they do if a loan is paid up.

Concentrate on paying one credit card account off at a time rather than paying equal amounts to a number of cards. Never consider consolidating your debts unless all the implications have been carefully thought out. There are far too many pitfalls in this choice. The ultimate objective for anyone who owes money is to reduce the borrowings to a minimum and solutions that suit best should be investigated.


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