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Topics: Credit Cards |
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| Managing Credit Card Debt |
Submitted by:
$aavy 05/16/2008 4:21 PM
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I'm amazed at how much credit card debt Americans carry with them every month. Interest payments on credit cards can be very high and can really eat into and cripple your monthly budget. Do everything you can to get yourself out of credit card debt as quickly as possible. If you’re saving any money, you’re most likely not growing your saved dollars as fast as you are paying out your credit card debt, and this is only going to put you further behind.
There are two ways to help fight your high interest payments so you can get to the point of being credit card debt free (and staying that way!):
1.If you can, switch your payments over to another credit card that offers initial 0% interest payment for the first few months or longer. Look for these offers in the mail and online. Just by switching over to a card that isn’t making you pay interest on your debt can be a huge help to getting out of your financial hole. But be diligent about making your payments each month and do everything in your power to get the card paid off before the new card’s interest rate starts kicking in (and if you don’t, try switching cards again to another 0% initial interest rate offer).
2.Another tactic to take is to call up your current credit card company and explain the situation you’re in (trying to pay off your debt, it’s really hard because you’re having trouble making a dent in it with the high rates) and let them know that you’re thinking that you’re going to have to cancel your card and switch to one that is offering a lower rate. Because the card companies generate a major portion of their revenue from these payments, they would rather keep you at a lower rate than lose you altogether (just think about how much they spend in direct mail to try to get you in the first place!).
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