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Wednesday, June 15, 2011

Break free from credit card debt of your own

 Easy access to liquid cash makes credit card one of the most sought after things among folks. It doesn’t make sense to draw money from bank account every time you need it. That is why we stumble upon credit cards when we feel cash short in our pocket. However, this very easy to access process has undone the real purpose of credit cards. We get so dependant on credit cards that we begin to use it for frivolous purpose. Unlike traditional bank loans, credit cards usually have hefty interest charge, from around 15% to 20%. So, when you miss any payment, interest gets accrued. If you make delay on your payment or make less payment, late fine penalties charge upon your account. Thus, you get trapped into vicious cycle of credit card debt forever. Before things go out of hand, you should try to settle credit card debt.

If this is your case, you should first try your own to resolve your credit card debt issues. You can employ a number of customized strategies to get rid of your credit card debt as early as possible. If you have multiple default accounts, you should first tout your focus on those accounts that are carrying exorbitant interest charge. After paying down some credit balance on your high interest card, you can start paying low interest cards. This can give you some relief and boost your confidence.

You can resolve your bad credit either though debt settlement or through consolidation. Here, your job will be a bit challenging as you have to convince your creditor about your concern. You have to make them understand that you are in serious financial hardship and cannot pay their debt. So, you want some debt settlement with your creditors whereby you will pay back outstanding balance through affordable repayment plan. Hereby you will have to negotiate your creditors by yourself and ask them to reduce some portion of your debt. Thus, you will pay less than you owe. However, forgiveness on debt could bring tax implication later.

Taking consolidation loan may help you to manage your debt better. By consolidation, your entire credit accounts will be merged into a low interest credit account of a consolidation company. And you will make your further payment through that singular account. However, it is always better to avail a debt consolidation program in order to pay off your entire creditors.

Apart from all these things, you have to be mindful about increasing your monthly income by doing overtime or some additional job. This extra earning will help you pay off your debt faster.


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