Debt and Credit Card Management Tips

Debt and Credit Card Management Tips
By Rai Magallanes

Credit card debt can put your financial health at risk. In order to manage your debt and your credit card use, you should gather all the pertinent information that you need. It is also helpful if you know all the options open to you. This way, you can make knowledgeable decisions and get relieved from credit card debt eventually.

If you are struggling with credit card debt, one of the things that can make it really difficult for you to make payments is the interest. When you carry a balance, you have to pay for high interest rates. This is also true for those who only pay the minimum payment. Fortunately, getting out of debt is possible. All you have to do is to be a responsible credit cardholder.

Here are some tips that might help you get rid of debt:

Reduce Your Debt

If you are in debt, it makes sense to stop any further use of your cards. However, it is not recommended that you close your accounts abruptly. Doing so will have a negative impact on your score. Instead of helping you out, it may only ruin your financial capacity even more. The best thing to do is to practice self-control. Don’t go into more debt unless you have already made payments on your existing dues. This way, you will be able to slowly solve your debt problem.

Have a Budget

Having a budget and sticking strictly to it is a good means of reducing debt. Create your financial plan and stick to it as much as possible. List all the amounts you owe as well as other fees, such as interest rates, annual fees, minimum payments, credit limits, and many other fees associated with your card. Prioritize bills that have the highest interest rates then decide how much you can readily pay off each month. If you can, strive to pay off the full amount so that you will no longer incur interest rates. If not, make a payment that is higher than the monthly minimum payment. Once you are done making a full payment with that particular account, you can then go on to the next one.

The Waterfall Attack

List of all your debt and arrange them from highest to lowest. Start paying with the highest amount and the one with the highest interest rate. Focus paying on that until such time that you have made a full payment. Once this is done, you can then move on to the next on your list. Getting rid of debt through this process may take several years to accomplish but you will be able to reap its benefits if you are able to stick to your plans.

The Snowball Method

An alternative to the waterfall method is the snowballing your payments. Instead of paying off the card with the highest rate first, you will pay first the debt with the smallest balance instead. List your debts in ascending order in terms of balances. The trick here is to pay only the minimum on all your other debts except for the one with the smallest balance, which you will have to pay in full if you can. The beauty of this method is that it not only helps you eliminate debt in the long run; it motivates you to make more payments as well. Since you are paying off the debt that has the lowest balance, you can quickly witness your progress and this will encourage you to pay all of your debt.

Seek Professional Help

Credit card debt counseling is valuable especially for those with really huge debts to pay. The problem though is that this type of service is not always affordable. Nevertheless, you can find free debt counseling from many financial organizations. With the assistance of an expert credit analyst, you will know which debt release solution is the best for your situation.

One of the best ways to get rid of credit card debt is to use a good balance transfer card. Find the best balance transfer cards at

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