How can I get rid of credit card debt?

Discussion in 'Credit Talk' started by kailey, Jan 3, 2011.

  1. kailey

    kailey New Member

    hello everyone,
    I am having credit card debt how can i get rid of it.Please suggest some best solutions to get out of it
     
  2. sparq

    sparq Well-Known Member

    Without further details, I can only give generic advice. Are any of your debts delinquent? Are they with a collection agency? Are they still with the original creditor?

    The first and best step is to simply avoid unnecessary credit card debt in the first place. For myself, I use my credit card only for consolidation of monthly utility bills (cable, internet, electricity, etc). My credit card company then directly transfers from my checking account so my bill is paid in full every month.

    The next step is to create a budget for yourself. There are many websites to help you with this, but the process is simple. Make a list of all your mandatory monthly expenses: food, car payment, mortgage / rent, fuel, utilities, etc. Be sure to allocate a small amount for "leisure money" if you can (that way, you aren't tempted to dip into your leftovers).

    With the money left over, make your minimum payment on each non-delinquent account. Any money left over from THAT should go to your card with the highest interest.

    Some -- but not all -- creditors are willing to help adjust your accounts in order to bring you current. For example, I was once six months behind on a private student loan and couldn't afford the 7x monthly payment to bring it current. I called the lender and they agreed to recapitalize the interest, effectively adding my overdue amounts back into the loan and re-setting me current. While this was hideously expensive, it was my only option to bring the account current while keeping my other bills paid.

    Good luck!
     

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