Control Credit Card Debt
Wherever you go, the temptation to open a new credit card lurks: gas stations, department stores, hardware stores and specialty shops all offer to extend you credit.
Often, that offer is combined with additional savings if you use the card immediately.
But opening a string of credit cards and charging balances to all of them is the easiest way to allow credit cards to get the best of you.
Before you know it, you could be tens of thousands of dollars into debt!
Don't worry - you're not alone.
Statistics show that the average family has about $7,000 in debts and annual credit card purchases recently topped one trillion dollars nationwide.
Getting out of debt can be made easier, however, if you are determined to make it happen.
Begin by changing your spending habits.
Instead of charging everything you want, charge only those things that are absolutely essential. Other rules to follow include:
- Pay off the credit cards with the highest interest rates first, and then close those accounts. Keep only one or two cards open for emergency use.
- Consider moving balances of cards with high interest rates to those with lower interest rates. But be careful, because every time you open a new card, the new account appears on your credit report. Your goal is to reduce debt, not transfer it from one card to another.
- Make more than the minimum payments on your cards each month, and always make your payments on time.
- Keep a list of purchases you make and compare them to your credit card statement every month. Dispute any charges about which you have questions.
- Plan for the future - create an emergency fund of cash to use for unexpected expenses instead of charging those items on your credit card.
If you're patient and diligent, within a few months you'll see your debt shrink and your savings grow.
However, if you feel like you can't get your finances under control and your credit card debts continue to mount, consider contacting bankruptcy lawyer or debt counselor to help you get a handle on your expenses.
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