It goes without saying that credit cards have a lot of advantages. Nowadays they have become an integral part of our life. More and more people prefer plastics to cash, as having a credit card is much more convenient than carrying cash. More than that, people can get more benefits from having a certain type of credit cards. For example, rewards credit cards are quite popular with people who want to get some rewards from getting a card.
However, we can’t say that credit cards are perfect. They can be both your friend and your enemy. One of the problems that credit cards can bring is credit card debt. The statistics show that current credit card debt in the USA is about $360 billion. The fact is that it’s really easy to get into debt. However, when it comes to reducing it, many people realize that it won’t be so easy as it may seem.
If you are in debt, you are to decide what steps you should take to get out of it. Here are useful tips that can help you to get out of your credit card debt.
First of all, try to pay off your monthly card balances. There is no doubt that it will be better if you make larger payments. By doing this, you will be able to get out of debt faster, saving on interest — the fact is that your monthly minimum payment is equal to your APR. And it is obvious that if you pay off only the amount of interest accrued to your balance, you won’t be able to get out of debt.
You can also call your credit card company and negotiate with it to reduce your interest rate. In some cases, it really works. Don’t forget that paying off your debt is in their interests as well. They can make a concession of this kind not to injure their reputation.
Another way of getting out of debt is to obtain a balance transfer credit card with low or 0% introductory APR. Then transfer your credit card balance to this plastic and do your best to pay off your total balance during the introductory period. In this situation, you won’t lose your money on interest.
In case you have two or more plastics with debt on them, you should consolidate your balances into a regular-term note. In this situation, you don’t have to pay several bills. You will have to make one monthly payment with a lower interest rate.
Of course, it’s up to a person to decide what strategy of getting out of debt he/she will choose. However, these tips can be rather helpful for those who decide to change their financial situation for the better.