If you need help getting out of credit card debt there are many options available. The first thing to do is – help yourself. Stop using your credit cards. Take them out of your wallet and put them in a drawer or freeze them in a block of ice. Better yet, cut them up! Remove all temptation.
Take all of your most recent credit card statements and make a list on a piece of paper. Do this so you can keep everything organized. Make sure you list the name of the credit card company, their address and telephone number, balance owed, minimum monthly payment and interest rate. Leave some space between each listing so when you call each credit card company you can write down any information they give you.
Next, take some time and call each credit card company. Talk to them about your situation and ask if there is any way they can help. Maybe by lowering your interest rate or doing away with the interest entirely so all you are paying on is the principle balance. All they can say is no, but if you don’t ask you will never know if they can help or not. Get this done as soon as you can, don’t wait any longer.
Now figure out where you can save money each month so you can put as much toward your credit card debt as possible. Start with your grocery budget, there is probably quite a bit you can do here. Learn to clip coupons from the paper or go online for printable grocery coupons. Stock up on sale items or shop at a wholesale club where you can buy what you need in bulk.
Do you own your home? Talk to your bank, tell them you need help getting out of credit card debt and ask about a home equity loan. Interest rates for a home equity loan are lower than credit card interest rates so you’ll be saving yourself some money this way, too. Not to mention getting a break on taxes.
If you have a savings account you probably don’t want to touch it and normally I would agree with you but look at it this way. Credit card interest rates are astronomical while the interest you are earning on that savings account is minimal, at best. Using the money in your savings to pay off your credit card debt could possibly save you hundreds of dollars in credit card interest. Remember to keep enough in your savings account as an emergency fund.
If you come to the conclusion that you can’t do this yourself then do some research and find a debt consolidation company. They will negotiate with the credit card companies on your behalf. You pay them one monthly payment and they make the payments to your credit card companies. Keep this in mind though, a debt consolidation company will do nothing good for your credit rating, just the opposite in fact. The next time you try to finance a purchase, the creditor will see that you needed help getting out of credit card debt and may deny your request.