There can be an array of ways to reduce credit card debt. Many credit card companies these days try to attract consumers through gimmicky promotions, such as cash advance checks and very low introductory rates. The low introductory rates often turn as high a rate as 30% or 40%. Because of the eventual high interest rates and other penalty charges that are applicable with their use, a person may get drowned in a sea of huge debts. Besides that, even some consumers have a very careless approach when it comes to using credit card. If you want to reduce credit card bills, the first thing that is very important for you to keep in mind is that these cards provide a convenient mode of payment and they must be used in that sense only. They do not generate money. They only provide an easy way to borrow when you need it. One has to pay for the convenience it offers. Following is a brief rundown on some of the steps to reduce credit debt.
Prepare A List
In order to reduce credit card debt, you must first write down the details of all your credit cards in a notebook. Note down the debts in increasing order, keeping the largest balance at the bottom of the list and the lowest one on the top. Do not forget to mention the current minimum payment that you have to pay. The payoff time can be increased exponentially by making the minimum payment on time.
Stop Accumulating Further Debts
It will be almost impossible to reduce debt if you are still using your credit cards and accumulating more debts. So, the next important step to reduce credit card debt is to stop using the convenience of plastic money because such convenience is a costly affair. If you want to buy an item, but you do not have cash for it, postpone your purchase. If you cannot earn a secondary income, try to cut down your expenses. Plan a budget, trimming down the expenses as much as possible. This way, you can easily regain control over your finance.
Pay More Than Just The Minimum Payment
Paying the minimum payment due in a timely manner is another proven way to reduce credit card debt fast. The resulting penalty charges otherwise will horrify you. In fact, if possible, you should try to pay much more than just the minimum payment. This will quickly reduce the overall balance and the reduction in balance will result in the reduction of the minimum payment as well. If you can earn some unexpected income, your can utilize that income here.
You may also like to pay off the debts by liquidating a savings account. Once you get rid of your debts, you can build up your savings again. Overall, we can see that there are several alternative ways to reduce credit card debt without filing for bankruptcy.