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Managing Credit Card Debt

Money Debt Worries, Attractive Young Woman Holding Credit Cards

Credit card debt is one of the worst kinds of debt that you can have. Not only are the interest rates normally very high, but owing a lot of money on your credit cards will also bring your credit score down. This is why so many people have a hard time managing their credit card debt. While the debt continues to accumulate, there seems like no way to get yourself ahead of it. There are a few things that you can look into however that may help you out.

First, if you have more than one credit card with debt on it, you will want to try and transfer as much of it as you can to the card with the lowest interest rates. This will help you to save money in the long run, and will allow you to pay off those cards with higher interest rates first. Be aware of some cards that charge you extra for balance transfers, and if you have one of those, do the math to see if it is still a good move for you.

If you can’t do that, consider signing up for a new card. Sometimes with new credit cards there will be no interest for a year, so you can transfer your debt over to the new card and take your time paying it off. If your credit score is low getting a new card may be difficult, but there are a lot of options available about there. See which cards offer introductory rewards, then make sure you use them to your advantage.

Transferring your debt not an option? Then you are going to need to formulate a plan to pay it back as it is. The best way to do this is to write down all of your different debts, then rank them from the highest interest rate down to the lowest. The goal is to pay off those debts that are going to cost you more the longer you take to pay them back. Then you want to go over your monthly budget and look for absolutely any place you can cut back. Every little bit that you can save, you want to move it towards paying back your credit cards. It may be rough going for a little while, but you really need to make your debt a priority. The sooner you can start making larger payments on your debt, the sooner it will go away, or at least be more manageable.

Lastly, if the above options won’t work for you, then you may need to seek the advice of a professional. There are many financial services out there that will help you to formulate a plan on how to best pay back your debt. Since they will be working with you directly on your finances, they can give you a more accurate plan of attack. While some of these services cost money, in the long run it may be a wise investment.

Hopefully this article was able to give you some ideas on how to manage your credit card debt. The important thing to remember is that you have options – you just need to find them and make the most of them. If you can do that, then before long your credit card debt will be under control, and your credit score will be back on the rise. Good luck!