Tuesday, 25 November 2014

Getting Back in The Black: Credit Card Debt

Credit card debt – the giant elephant in the room that sometimes you don’t even want to acknowledge, let alone discuss with anyone else. We all know that sometimes it gets to the point that ignoring this monetary mountain seems like the only way to preserve your sanity – but if you’ve reached this point we urge you to reconsider! In this case, the phrase ignorance is bliss could never be more incorrect!!

Here are some realistic credit card debt solutions that can help you get a handle on these financial obligations:

  • Pay the minimum monthly payment at the very least. Never ignore a credit card statement – this will quickly destroy your credit. If you can, pay a bit more than your minimum payment on each card. Since monthly minimum payments are mostly interest, paying just a bit more each month means you are actually paying off the balance.
  • Pay the card with the highest interest first. With interest rates as high as 29%, your monthly payments on credit cards are going to be almost all interest – meaning very little is actually being achieved as far as paying these cards off. A popular method for getting rid of credit card debt is to start with the card with the highest interest rate and pay as much as your budget will allow on top of the minimum payment, while still maintaining the minimum payments on your other cards. Once that card if paid off, start on the card with the next highest interest rate.

Sure, these two suggestions are both great if possible – but if you can’t pay even the minimum, it might be time to think about some other options.

  • Apply for a debt consolidation loan. One of the reasons that credit card debt is so problematic is because of its high interest. If you have more than one credit card company hounding you for payments on a regular basis, why not consolidate all of those debts into one with a consolidation loan with a lower interest rate. Not only does this option reduce the amount that you are required to pay (meaning more is applied to the amount owing rather than just empty interest payments), it also keeps it contained with one convenient monthly payment.

Can’t get a handle on your credit card debt and feel as though you are suffocating? Don’t let it become insurmountable. Get in touch with a debt solutions organization with the knowledge and expertise that can help you get a grip on this all too common financial problem.

For more about strategies for dealing with credit card debt please call DebtCare Canada today at 1-888-890-0888.

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