5 Easy Steps to Get Out of Credit Card Debt
Can you imagine being debt-free after racking up thousands of dollars on several student credit cards? It may not happen overnight, but you can find credit card debt relief if you follow five simple steps:
Credit cards - the financial tool for your back pocket
Compare student credit cards before choosing the one thatís perfect for you
A student budget - the key to financial freedom
Step One - Realize that you have a problem
The first step in seeking credit card debt help is coming to terms that you need the help. Maybe seeing your huge bill on paper isn't enough. It will probably take an empty student checking account to finally see the light. Whatever it takes, as long as you realize that you have a problem, then you can begin the process to solve the problem.
Step Two - Eliminate future chances of debt
Choose one or two of your credit cards with the lowest interest rates and hide the rest. If you leave the other credit cards at home in a safe place then you won't be tempted to use them when you're shopping.
Step Three - Make the call
If you have any credit cards with interest rates above 14% then contact the dealers and tell them that you are having difficulty making payments. Ask them to reduce the rate
Most credit card companies will work with you to reduce the rate or to figure out an extended payment plan because they don't want to lose your business
Step Three - Make a list and start your payments
Make a list of all of your credit card accounts and the minimum payment that is due for each one. Make it a point to pay each minimum balance PLUS an additional 10% each month before or on the due date.
Step Four - Lower your expenses
Now that you are organized and making your payments you can still afford to make ends meet. Check out our page on student budget plans to see how you can save and spend money wisely.
Step Five - Ask for help
If you still can't get out of your credit card debt then you should contact a credit counseling organization.
- A credit counseling organization like Credit.com is a professional service that helps people manage their money and repay debt.
- They may recommend that you enroll in a debt management plan.
- A debt management plan uses money that you deposit each month into an account to pay off your credit card debt
Having good credit means you will have a good credit score and credit report, as well as a credit rating that will get you future auto loans and mortgage loans.
So if you can handle credit card debt relief and manage your credit on your own, then you will save yourself a lot of money and stress.