debt recovery

5 Steps To Reduce Your Credit Card Debt Down To More Manageable Levels

Bringing your credit card debt down is not an easy process. After all, it takes real willpower to bring it down. Most folks today don’t carry cash, which makes it so easy to swipe a credit card. Believe it or not, it won’t take long before the balance on a credit card - not to mention the interest – begins to add up. Thus, decreasing how much debt you have will need a serious, well-thought out plan that you must execute… if you are going to succeed.

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How To Reduce Your Credit Card Debt

1 – Don’t Spend Near As Much On It

This is pretty self-explanatory. If you don’t spend near as much on your card, you won’t have to pay near as much back.  This is the ultimate key to reducing the amount of debt you have.  So, unless you have a sudden windfall of money to pay off your creditors, the best way to reduce the balance is to pay more than just the minimum owed.

2 – Keep One Or Two On Hand

If you have more than two credits on hand, begin to get rid of them. Use your other two cards for emergencies but not for everyday or impulse purchases. Be sure you look through the cards to see which ones offer you the best interest rates. Get rid of the high interest rate cards.

3 – Take Advantage Of Low/Zero Percent Interest Rates

If you’re looking to reduce your debt, be sure you take advantage of offers that give you low-interest or zero percent interest. All credit card companies want your business and they’ll do what they can to keep yours. Many of them offer special low rates for balance transfers. If you can obtain six months of no interest and make large payments, the entire payment goes toward that balance…not the interest!

Look at reducing your credit card debt like it’s a part-time job. You always want to look for special offers and coordinate them so when the current card you have is about to increase its interest rate, you’ll have the new card in your hand. This doesn’t always work out but keep your eyes peeled and you’ll see how often these offers come in the mail.

4 – Compare The Interest Rates

Be sure you look at all the interest rates on your cards. If you find one that’s offering you a lower rate, there are two things you can do.

A – If you’ve got room on the lower rate card, transfer some, if not all, of the higher rate card’s balance.
B – Speak with the representatives of the higher interest rate credit card. See if they’ll work with you to lower your interest rate. They may be more inclined to do so if they know you have a competing card with a lower rate.

5 – Set Up Automatic Payment

The final way to reduce your credit card debt is to set up automatic payment. This can be very effective in bringing your overall debt down to manageable levels. You’re going to need willpower if you find something you like and have extra money on hand. You’ll need to decide if paying for those extras is worth it or if you should pay the debt down. When the bank does it for you, it leaves you with no choice but to pay that debt down.

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