Often times we come out of the
holiday season having charge all our presents on our credit card. This post holiday debt can be a huge burden
on many Americans. It can feel
like it is impossible to get out from under.
But there are some things you can do to help pay down credit
card debt.
1) Paying more than the minimum.
This is a must. Dig through your cash flow and find a way to cut out expenses,
so you can increase your monthly payment to the credit card.
2) Use the calendar to your advantage.
If you can make more than
a minimum payment, a proven
way to pay more is by make separate additional payments. Try making a separate half payment every 14 days.
3) Laddering.
Most people with credit card debt have
debt on multiple cards. Make a list of all the cards, what their interest rate
is and what the monthly payment is. Most
times the best course of action is to pay the highest rate cards first. But if you
find that you have a few small balances, it is best to pay them off quickly, so you free up more
cash flow for payments on the other cards.
4) Ignore the debt settlement companies.
I know they sound like they can solve your problems, but their strategy usually ends up screwing up your credit. After you pay them a fee and possibly a monthly retainer, they tell you to stop making your payments and build up your cash. They then try to get the credit card companies desperate to negotiate a reduced payoff settlement. Just don't do it.
If you just can't get that debt
paid down, look to a financial planner or other legitimate source.
The National Foundation for Credit Counseling is another good place to get help. www.NFCC.org
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!