With so many people owning and using so many credit cards, loans and mortgages it’s not surprising that eventually some people make mistakes while managing finances and thus end up in credit card debt. However if and when you are in credit card debt, instead of crying over your spilled milk, you have to work at resolving things and getting back on track with your finances.
It is important to resolve things as the more payments you miss, the more fees and interest your loan accumulates. Moreover, if you miss your payments, you also start receiving letters and threats from solicitors regarding court action. This in turn creates lots of stress and worry, which can be avoided just by getting out of credit card debt.
Credit card debt consolidation
The most common option available to get out of credit card debt is debt consolidation. This is a technique where you use a loan to repay all your present debts that includes credit card, loans and mortgages. The benefit of this option is that you end up with only one payment to make every month. You thus don’t have to remember various payment dates and amounts to pay per month.
Moreover, the minimum payment amount you have to pay towards this loan is usually considerably lower than the amount you previously had to pay all your debtors. If you only have credit card debt as you failed to repay your credit card balances on time, you could consider doing a zero balance transfer.
Repay only the money you borrow
This is where you transfer the balance amount to another credit card that offers 0% interest. These cards offer 0% interest for 6 months or a year, and you have to work at repaying the balance amount within this time span. The benefit of this balance transfer is that you end up only repaying the money you had borrowed, and need not pay any additional interest or fees.
With the help of these tips, you will be able to get out of credit card debt. Of course, it’s always better to first avoid falling into debt by using your cards wisely and curbing on your expenses.