A Few Tips to Manage Credit Card Debt On Your Own

In credit card debtPeople can incur credit card debt due to many reasons, such as extravagant holidays, overwhelming medical expenses, temporary job loss and wage reduction. However, no matter how you incur the debt, it is important to come out of it and achieve debt free as soon as possible. The best way to free your debt is to manage it all on your own instead of enrolling on a debt relief program and hiring the services of an attorney. That way you can contribute all your money towards paying off the debt and come out of the obligation fast. So let us take a look at how to manage debt on your own.

Contact Your Credit Card Companies

The initial step to manage debt on your own should be contacting the credit card companies and asking for a lower rate of interest. When you contact the companies, you may find some of them being reluctant to lower the interest rate, while others willing to lower it. If your creditor agrees to lower the interest rate on debt, your monthly payment will get reduced and become for you to pay off the debt.

Know How Much You Owe

The next step is to create a table and list the name of the card, the interest rate, the current outstanding balance, the current minimum payment and due date in each column. If any of your cards has more than one interest rate, such as a rate for cash advances and a lower one for purchases, list the highest interest rate that you are paying.

Pay More Than Minimum

Credit card ratesRemember, making only minimum monthly payments can hardly pay down your outstanding balance on debt. So it is always advisable to pay more than minimum in order to pay off the debt first. To do so, add all the minimum payments to find the total monthly payment. After you find the figure add some additional amount that you think can put towards debt each month. Try to add as much money as possible cause the more you will add, the faster you will be able to come out of the crushing burden of debt.

Another great way to manage to pay off the debt is paying the highest interest debt first while paying minimum towards the lowest interest debt. Continue doing this unless you pay off all your debts.

Contribute all your unexpected money or extra cash to the card that carries highest interest rate while making minimum on the card with lowest interest rate. This is another great way to manage to pay off the credit card debt all on your own.

Thus, considering the above mentioned tips can help you manage your credit card debt on your own.

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