Reducing your debt
Reducing your debt

If the amount you owe others is at an uncomfortable level, you’re not alone.
Millions of Americans have spent too much on credit and then learned – the hard
way – how difficult it can be to pay it off. Here are some tips for lowering your
debt:
· Ask for help. Many nonprofit debt counseling centers across the country will
advise you for a low fee or at no charge. Contact the Consumer Credit
Counseling Service in your area. (Check the White Pages in your phone
book.) They can often help you work out a repayment plan with your
creditors.
· Make a written plan. Make a list of all your bills and their amounts. Figure
out when each bill can be paid.
· Contact your creditors. Contact your credit card company or other creditors
to try to get your rate lowered or a different payment plan worked out.
· Make more than the mi nimum monthly payment on credit cards. You will
save lots of money on interest and reduce or eliminate your debt much
sooner.
· Don’t take on any new debt. Stop using your credit cards. Say no to offers
for credit cards, debt consolidation, and second mortgages.
· Be aware of credit card rates and fees. Educate yourself about the annual
fees, current interest rates, finance charges, cash-advance fees, and any
other fees tied to your card. This knowledge can help you make better
decisions about which card to use and how to manage your card.
· Cash advances can be trouble! Only get a cash advance when it is
absolutely necessary. Higher interest rates (than you’re paying for card
purchases) are usually charged, and the rates are put into effect immediately,
without a thirty-day grace period. Most banks also charge a service fee
based on how much cash you’re withdrawing. The same applies to
personalized “checks” some credit card companies may send you.
· Transfer balances to cards with lower interest rates. Find credit cards that
offer a low introductory rate (usually for six months), and transfer the balance
from your previous credit card to that credit card. Before you take this step,
however, make sure that, after the introductory rate has expired, the new card
offers the same (or lower) interest rate as your current card.
· Don’t give up. Reducing your debt is challenging, but don’t stop trying. It’s
one of the most important things you can do for a better financial future.
- posted by Mark Pane @ 8:10 AM 0 comments