It’s hard to be financially stable when you’re struggling with credit card debt. In fact, it’s not even really possible. That’s why if you have credit card debt, you should start thinking about how you can eliminate it. The sooner you get started, the easier it will be.
There are many different ways that you can eliminate your credit card debt legally. Some are easier and more effective than others. A few of the most concrete and straightforward ways to reduce and eventually eliminate your credit card debt are discussed in detail below. Only when you eliminate your credit card debt legally, will you achieve true financial stability.
Change Your Ways
The absolute easiest and most effective way to eliminate credit card debt legally is by changing your ways. This can mean a number of different things. However, the two most important ways that you can change involving credit card spending are:
1. Stop using credit cards. Sure, when you’re struggling with credit card debt, it certainly is hard to put enough aside for monthly expenses, but you should try very hard not to use your credit cards anymore. Doing so will only add to your problem and make it even harder to eliminate your debt once and for all. You can stop creating more credit card debt by refusing to sign up for new credit cards and by cutting up your existing ones.
2. Create a solid plan. Having a plan, like a budget plan, is an essential step in eliminating your credit card debt legally. A plan can help you pay-down your credit card and will force you to stick to a payment schedule. Make minimum payments on your larger debts and work as hard as you can to pay off your smaller debts in full. By tackling things from the bottom up, you will be setting yourself up for success.
Dealing With Credit Card Debt Directly
After you have made it a point to stop using your credit cards and have created a solid plan, it is time to appeal directly to the credit card companies, especially if you are still struggling to make payments or are having other financial difficulties.
Many credit card companies will allow you to place a hold on the interest charges for your credit card debt. The hold will last for a set period of time and is meant to make it easier for you to make monthly payments (since they are smaller without interest added on top).
Furthermore, many credit card companies will also help work out a payment plan with you. In fact, they may even allow you to work out a plan that lets you settle your entire debt for a smaller amount over a set period of time. Though this option is a great way to get rid of all of that debt, it also appears on your credit report and can make it much harder to take out loans in the future.
Explore Credit Card Debt Reduction Options
If not using your credit cards, making a budget plan, and talking to credit card companies hasn’t done anything to help you with your debt situation, your next step is to explore the many credit card debt reduction options that can help you eliminate credit card debt legally.
1. Consider credit card debt consolidation. Perhaps one of the most effective forms of debt reduction is debt consolidation. In its most basic sense, credit card debt consolidation takes all of your monthly payments and combines them into a single, easy-to-make monthly payment.
2. Consider debt settlement. With this form of debt settlement, you negotiate with your creditors and agree on a lower total payment amount. In many ways it is similar to the talking to your creditors tip discussed above. The big difference, however, is that a debt reduction company usually helps you out. This tends to guarantee better results.
3. Consider debt management. Another debt reduction option that involves working directly with a debt reduction company, debt management can help you pay of your credit card debts once and for all. It basically consists of making a solid plan with the help of a trained professional that will help you manage your debts, finances, and, heck, even your life itself.
Get Everything in Writing
When you are aiming to eliminate your credit card debt legally, it is of utmost importance to get everything in writing. If you make an agreement with a representative on the phone, make sure that they send you a paper copy. Don’t take any chances with your creditors – they want your money just as badly as you do.
Though eliminating credit card debt legally is not a walk in the park, it certainly can be done when you set your mind to it. Remember to take your time, consider all of the options, follow the advice above, and ask questions to a trained credit counselor when you are unsure of what to do next. Before long you should have your credit card debt, and your life, back under control.