Reduce Your Credit Card Debt
Credit card debt has become a gorilla on the backs of too many consumers. No longer a frisky monkey, the debt load of borrowers around the globe has increased to crushing dimensions. Countries around the world are taking note of the recurring problem and at last are taking steps to help diminish the effects upon consumers and on lenders of bad debt and defaults. Consumers are desperate to find ways to reduce credit card debt.
Turkey, Thailand, South Korea, and America are among the growing ranks of countries around the world who have taken steps to curtail credit abuse. India has plans in the works also. The new standards are requiring credit checks, caps on interest limits, tagging credit extension to ability to pay, and new regulations regarding additional fees and interest hikes.
Ways to reduce credit card debt are popular topics everywhere, in print and media. And advice is abundant, if debtors wish to take steps to reduce their debt loads. TV guru Suze Orman has built a career on money, debt, and credit advice. Here are some of the notable ways to reduce debt loads:
- Stop all new charging, and cut up your credit cards
- Do not take out any secured loans, such as home equity line of credit or loans, upon which to transfer your unsecured credit card debts. You could lose your house or property if you do; you must pay a secured loan or lose collateral. Credit cards are unsecured. You will only lose your credit rating if you default
- Call up credit card companies and ask for lower interest rates or a month payment hiatus with only interest added
- Pay off the highest interest card first. Then take the payment you were giving to this one and apply it the next period to the card with the next highest interest. Continue this until all are paid in full
- If you are able to transfer to a zero percent for balance transfer card, do it. Most likely if you are looking for ways to reduce credit card debt, you are already in trouble enough that you would not be approved for such a card
- Sell extra items you do not need and apply that money to your credit card debts
- Obtain extra income from an additional or part time job. Apply all to debt
Even though it may be disappointing and frustrating to pay down debt, there is light at the end of the tunnel when you are debt free. Being debt free is enlightening!
