Card Debt

So, you've racked up some credit card debt have you? Well, you're not alone, many of us have been in debt in some form or another, but how do you get your finances back on the right track? We need some credit debt solutions.

The very first (and possibly the most important) of the credit debt solutions to master is - stop creating more debt! And once you've stopped ... don't fall back to it and start using your credit cards again! Cut them up with scissors right now! Once you've stopped creating more debt we can then concentrate on reducing it.

Credit debt solutions #1 - Sometimes you can get a discount, no, really you can.

In some cases, you might be able to pay off large amounts of debt in full and only pay 50%! How, you ask?
Well, if you're in a situation where you might soon have to file for bankruptcy, some credit card companies may well take 50%, or even less, as full payment of all your debt - it's either that or they get nothing when you go bankrupt. If you can borrow that 50% from family or friends instead, you'll have it all paid off in no time and can then concentrate solely on paying back the much smaller you now owe whomever you borrowed the money from.

To do this, you should send a letter with an explanation of your situation and where you'll be getting the money from to pay. Say that you're about to file for bankruptcy, but would really like to settle up with as many creditors as are willing before it gets that far. How's that for a credit debt solution?

Credit debt solutions #2 - Paying for your debt in the most efficient way

A good rule, which is obvious to most people but not always followed, is to make sure you pay off the highest interest cards first before anything else. Pay off the minimum payable amounts for each of your cards first and foremost, then if you have anything left in your debt payment budget, put any spare money on the one with the highest interest. You must give priority to this one and get it paid off before anything else. This will save you a lot of money on interest charges in the long run, and can be the quickest way of reducing your credit card debts.

Credit debt solutions #3 - Any other hint and tips?

Avoid credit card insurance if possible. This is the type of insurance that will stop you having to make payments if you become injured or unemployed. It's a very expensive type of insurance and will just simply delay your debt for a while, not reduce it. In fact you'll rack up more debt due to the cost of the insurance.

Also avoid credit card security insurance. This is the insurance that will make sure you don't lose money if your credit card is stolen. In most cases, this insurance is not needed and you'll only be liable for a small amount (if any) if someone does use your credit card unlawfully.

If you use a consolidation loan to reduce your repayments and spread them over several years, be aware that unless you pay the loan off early, you'll be paying back a lot more as it's over a longer period of time.

I hope some of these credit debt solutions will help you on your way to reducing that debt. I won't say that the credit debt solutions I've given above will work all the time, but I'm sure they'll help a few of you out there.

Make sure you have a look around the rest of the site for some more credit debt solutions. The search bar is always willing to give some good advice!