Putting Together a Plan To Get Out of Debt

Aggressive marketing techniques and easy to obtain credit cards make it all too simple to find yourself in a sticky debt situation. If you have found yourself in skyrocketing card debts, there are a few sure-fire ways to stop the climbing interest rates and gain control once again, such as: stop using your cards, transfer all cards to one lower interest card, paying the total amount due on each bill, paying on time and paying off higher interest cards first. Here are some tips:

We all know the easiest way to prevent further debt: stop spending. If not spending isnt an option, opt for using one card to pay off all others to lower the high interest rates - or stop using your credit cards altogether and use cash for spending - to prevent further debt increase.

Evaluate your bill importance not by the balance, but instead by the interest rate. The amount you owe is less important than the actual rate at which your debt is growing in interest. It is wise to pay the highest interest-rate cards first. If you are unable to pay off a large balance, switch to a credit card with a low annual percentage rate (APR).

Write a letter or call your credit card companies and let them know that you are working toward reducing your debt. Ask about lowering your interest rates, or ask them to lower your amount available to help you in your process of lowering debt. Once you have your cards paid off, you can contact them once again to thank them and ask for your limit to be raised once again.

Avoid paying your credit card payments late to eliminate unwanted monthly fees. Also, ridding yourself of all cards but one or two can help to reduce unnecessary credit card fees and spontaneous spending.

Paying only your minimum balance on your card is the perfect way to stay in debt and watch it climb. Instead, pay as much as you possibly can, or pay the entire total due to watch your card balance decrease and sidestep climbing interest rates and growing balances.

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