It’s you? Are you in search of assistance with your credit card debt? If so, you’re only one of many.
A recent study highlighted that the typical American household is grappling with $7,149 in credit card debt, and the average indebted household is burdened with $15,325. Keep in mind that these figures represent averages, indicating that numerous families carry a far heavier debt load than the reported $7,149.
For those looking to enhance their financial management skills, it’s worthwhile to delve into practical tips for handling debt starting now.
1. It doesn’t matter how you got there
Regardless of the reasons behind your mounting credit card debt – be it job loss, underemployment, or other unforeseen circumstances – dwelling on the past won’t change your current situation.
- What truly matters now is focusing on actionable steps to tackle and overcome that debt.
- Rather than fixating on the “how,” shift your attention to “What steps can you take to regain control and alleviate the burden of your credit card debt?”.
2. There is help available
Despite the cloud of debt hanging over you, there are multiple avenues you can explore to settle your credit card balances.
2.1. List and track how much you owe
- Begin by compiling a comprehensive list of your credit card debts, including their respective interest rates and total amounts owed.
- Your primary focus should be on settling the card with the highest interest rate first, as this approach strategically minimizes the overall interest burden.
- Dive into the task of paying off the high-interest card to initiate effective debt reduction.
Once you get that card paid off, you can use the money you’ve freed up to start paying off the card with the second highest interest rate, and so on—until you’ve paid off all your credit card debts.
2.2. Spend less
Cut out unnecessary purchases so that you have money to pay down your credit card debt each month.
- For example, if you buy a four-dollar cup of coffee every morning, you should try brewing it at home for less. If you find yourself compulsively using your credit cards, then don’t keep them on you and make them available only for emergencies.
2.3. A debt consolidation loan
Another alternative is to address your credit card debts by opting for a debt consolidation loan. This approach can alleviate the pressure from various debt collectors.
Additionally, you’ll only need to make a single monthly payment, which is likely to be lower than the sum of your current monthly payments. It’s essential, however, to secure a loan amount sufficient to settle all your outstanding credit card balances.
The consolidation process simplifies your financial management, as you’ll only need to focus on a single, more manageable monthly payment, making it easier to regain control of your finances.
2.4. A debt management plan
You could also get help with your credit card debts through a debt management plan. This is usually done in combination with a consumer credit counseling agency.
- If you go this route, you will be assigned a debt counselor who will go over all of your finances and help you develop an affordable payment plan.
- If all your lenders approve your plan, you would then send one check a month to the credit counseling agency, which then pays your creditors.
2.5. Declare bankruptcy
When faced with unmanageable credit card debts, declaring bankruptcy is a viable solution.
Opting for Chapter 7, the most prevalent choice, results in the discharge of all credit card debts along with certain other unsecured obligations like personal loans and medical bills. Yet, Chapter 7 bankruptcy does not alleviate student loan debts, past-due alimony, child support, or owed taxes.
3. Can we help? (Create and implement debt relief strategies)
We think the best help for credit card debts is to let our partner, DebtBye, provide a debt resolution program that can help you get out of debt more quickly and regain financial stability.
Debt support assistance contains:
- Declaring bankruptcy
- Advising about credit
- Managing your debt
- Merging your outstanding loans into a single loan
- Speaking with a qualified debt adviser
- Negotiating with your creditors
Benefits you should know:
- Free consultation to help determine the best debt relief solution
- High success rate in helping manage and reduce debt
- Provides educational resources and information
- Diverse and reputable networks of lenders
- No fees or requirements to sign up for services
- A customized approach to debt relief
- Ongoing support and guidance throughout the debt relief process
DebtBye offers a simple, 100% satisfaction guarantee. If they can’t help you become debt-free promptly or if you’re unsatisfied with their programs, cancel with no fees or penalties. In other words, you have nothing to lose by working with our debt consolidation providers for all of those credit card debts.
In conclusion, sometimes the solution is not as hard as you think it should be. Simple debt solutions may be right in front of you; all you need to do is take the time to look at and act on them.