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How to Manage Your Credit Card Debt

April 13th, 2011

Living under debt isn’t fun for anyone, and unfortunately, it’s a yoke that most people have become uncomfortably used to in a society build upon credit debt. There are so many sources saying that this is good credit that is bad credit and it’s hard to know if you’re in a good or bad situation. The reality is, regardless of what kind of debt you have, it’s better not having it at all. Here are some quick ways you can begin paying down those bills and get you closer to a debt free life.

Pay More Than The Monthly Minimum:

Credit card companies thrive off of interest. They don’t want you to pay off your credit card. If you have a large balance and you’re only paying the minimum, it’s likely that you’ll never pay it off. Most of you money is going strictly towards interest. Looking at the balance every month and seeing the figures either staying stagnant or climbing higher, you should start paying far more. Whatever you can reasonably afford, do it, and pay it off. You actually end up saving money in interest alone.

Downsize Your Life:

If you own a home or rent a large apartment then consider downsizing. Moving to a smaller home or apartment will save you across the board. You won’t have to pay as much in utilities and you won’t need to fill your new home with as much stuff. Of course there is the initial cost of moving but in the long run you’ll save tons and get your debt under control at the same time. If you don’t think there’s room enough in your new place for all of your old stuff, use a StorageMart to safely and easily house your things while you’re getting your finances in order.

Filing For Bankruptcy:

This is for those who are in dire straits and don’t have any other alternatives. They debt may be simply too much to control and your head’s too far under water. This is a last resort only. The most common form of bankruptcy in the United States is Chapter 7 . This is when a person is discharged of all debts. Alimony, child support, some student loans, and others aren’t covered by Chapter 7. It will relive you of the responsibility of repaying most creditors but you’ll also have to give up much of your property in order to satisfy those who are owed. Your credit will be very poor for several years and creditors will be reluctant to work with you. If they do, you’ll likely face terribly high rates of interest. As stated before, this is a last resort option.

Though these are some of the most effective ways of paying down credit debt, there are many others. You might also want to speak with a financial advisor to attain an overview of your other options, if you’re finding yourself in need of assistance. There’s always an option but nothing prevents credit debt like good sound financial practices like paying off your full balance every month and using credit in times of emergency rather than as a means of buying things you can’t afford.

Jason Guest Post

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