If you’ve accumulated a lot of credit card debt, there are consolidation loans for people with bad credit. According to Creditcards.com about 40% of Americans carry a balance on their credit card every month without paying it off. It can become a vicious cycle if it’s not dealt with swiftly. If your cards are maxed out and you feel your financial health spinning around the drain it’s time to really buckle down and get a hold of your credit card debt.
Here are 7 Tips To Get Out of Credit Card Debt:
Instead of using plastic, use green
If you have an interest rate of 15-25 percent, this can cause your credit card debt to grow very rapidly. It can be very discouraging to chase the minimum payments and watch the principal balance only grow bigger and bigger. Use cash or a debit card until your credit cards are paid off. This will force you focus on paying down your balances, and it will force you to be more disciplined in your spending.
Live beneath your means
It’s a basic concept, but a lot of consumers don’t know exactly how much they spend each month. Good intentions, but lack of discipline in this area can often leave you coming up short and sinking deeper into credit card debt. Step one is to track each and every dime you spend. Keep your receipts and log them in a notebook or your computer. When you get a better picture of where you’re spending your money, you can then look for ways to scale back.
It’s probably time to cut out the discretionary spending
It might hurt a little, but scaling back on non-necessity spending (like eating out or purchasing that new outfit) is probably essential towards getting out of credit card debt. These sacrifices (for however long they take), will result in more freedom later when you don’t have credit card debt looming over your head.
Look for ways to earn some extra money
Have you considered getting a part-time job? Can you give up an extra evening or weekend to help make ends meet for a while? There are many non-traditional jobs nowadays where you can work from your computer at home. You could consider doing market research from home too. Check out the Mystery Shopping Providers Association website for more information.
It doesn’t hurt to ask
Talk to your creditors and tell them that you are trying to pay off your credit card balance. You can always ask if they would be willing to lower your interest rate, or help put you on a short-term repayment plan.
Talk to a credit counselor
There are many non-profit consumer credit counseling organizations that will work with you to help you develop a budget and explore your options for getting out of debt. Check out Greenpath.com or another member of the National Foundation for Credit Counseling.
Set your goals, and reward yourself occasionally
Getting out of debt is hard work and takes real discipline. You’ve probably had to modify some behaviors that got you into debt in the first place. Find new ways to reward yourself that don’t require spending money. Sleep later one morning, take a walk at sunset with a friend, or go out for a cup of coffee.
Why Hiring a Debt Attorney Can Help You Consolidate Your Credit Card Debt
Going through these steps will undoubtedly lead you towards better financial health. You will gain satisfaction in working to settle debts on your own. However, there are always circumstances in which you may feel that you need the assistance of a licensed attorney to help consolidate your debt and help you turn your bad credit around. After analyzing your situation, a debt attorney can provide you with the legal advice you need. A debt attorney will go over all of your options and advise you accordingly. We’re here to help you discover what your options are. Please give us a call at 855-976-5777.
Kevin Fallon McCarthy
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