Credit card debt could be a financial liability that would spoil your peace and life in general. The plastic products have been developed to provide convenience as these could be a substitute for cash. However, because many consumers use the cards for irresponsible and uncontrolled spending, the products become instruments for debts.
Credit cards have become more like traps that are laid out by credit card firms using clever marketing strategies. Through the years, the cards have been used by consumers more for unnecessarily splurging on new and expensive products that invade the retail shops. The cards even facilitate online shopping, which has made it all the more instrumental for debt accumulation.
Is your credit card debt level within a dangerous and risky level? There are two certain options for getting rid of credit card debt. First, settle the debt and second, repay it gradually. If you are not capable of repaying the debt fully, you could increase your income to do so or make installment payments. If you could not make regular payments, you may opt for debt reduction or bankruptcy.
Paying not in full
To pay for your credit card debts, you should take a second job or explore other income sources. This way, you could generate additional money that you could spend to cover your debt obligations. Start setting financial goals now. How much do you need to earn additionally each month so you could soon get to complete your credit card debt repayment?
Credit card firms allow customers to make minimal required payments each month. You do not need to make hefty payments that could hurt your personal budget. However, paying only a minimal amount each month could be costlier in the long term. You may opt not to settle the credit card debt amount in full. Just strive harder to pay more than your minimum required payment. Remember, the longer your credit card debt remains, the more you would have to pay for interest and other charges.
Inability to pay credit card debt
If you are unable to pay for your credit card debt, you may approach credit card firms to reduce your outstanding credit card debt balance. Do not worry. Most credit card companies are now more than willing to help consumers who are in dire financial situations. You could have your late and over-limit penalty charges waived. You could also try to ask for reduced interest rates. Try to contact a credit counseling service as it could assist you in effectively negotiating for lower credit card balance.
If bad comes to worse, you could opt to file for bankruptcy. As you know, doing so would automatically dismiss your credit card balances. However, filing for bankruptcy could bring about devastating effects particularly to your credit record. Thus, as much as possible, try to avoid this option. The other options described could be better in helping you get rid of your current credit card debt. Good luck on this endeavor.
[Andrew has been writing on credit card debt in various personal finance blog. Over the last 2 years, Andrew has contributed a large range of articles.]