How Can You Control Credit Card Debt?

by : Joseph Kenny



Credit cards are now the used everywhere, from your local corner shop to massive chain stores, online, and even on holiday, in every corner of the world. Credit cards have made shopping for all kinds of goods and services incredibly easy and convenient, for tens of millions of people around the globe.

Unfortunately this convenience and ease of use has led to an ever-increasing level of credit card debt. Individuals that owe large amounts of money to their flexible friend. Must try control their spending and reduce their over credit car debts to avoid serious financial hardship.

Credit cards can be a useful tool, because of their incredible convenience and ease of use. This convenience is what leads many people into financial difficulties, credit card companies themselves slowly seem to be recognising this fact.

Some companies are now actually beginning to lower credit limits for existing customers that previously did not use anywhere near their credit card limit. Many companies even offer advice to customers on how to deal with credit card interest and debt.

Realistically the problem has to be resolved by the cardholder themselves. It is quite possible that in the short term you may not be able to clear away any credit card debt. But it should the practical to at least, significantly reduce the amount that you owe.

The first thing to consider is not reducing the amount of credit card debt you have. But instead, concentrating on not increasing that debt, by controlling the amount of money spent on your credit cards.

One good solution is to reduce the number of cards that you carry around with you. If you have four or five cards reduce them down to one. Take the other four and put them somewhere safe at home. Carrying one card reduces the temptation to charge everything to the plastic.

If you think it is possible that you can manage without so many cards then consider cutting up one or two credit cards. Preferably ones with the highest balance, you should not, however, cancel these cards, you should only destroy them.

The next option is to make sure that you are never late with your credit card payments. Late card payments not only harm credit standing, they also incur interest and fees.

You need to stop thinking of credit cards as your main payment method. If you can try to draw out all the cash you need, each week from the bank. This will help to reduce impulse spending on items you don't need and can't afford.

Try not just pay the minimum off your card balance each month, doing this will take 18 years to pay off your existing balance. Instead select the card with the highest balance and concentrate all your efforts on paying as much of that card is possible. You should not forget to make payments on all your other cards.

When that card has been paid off in full, start the process again with the second highest card, and so on.

You might want to consider transferring balances from your cards to new credit cards that have a zero rate of interest. Reducing the amount of interest by will vastly speed of your repayments, giving you the psychological boost as well as saving money on interest.

One last option is to consider taking all your credit card and other debts, and using a debt consolidation loan to pay them all off. This will reduce the rate of interest you pay, and get your monthly payments down to a realistic level. There are lots of brokers online, who can help you set this up quickly and efficiently.