Clik here to view.
Are you looking for three simple ways to eliminate your credit card debt? The first one is obvious, stop using your credit cards. This may seem like a silly thing to suggest, but the best way to get a handle on your spending is to only spend the cash you have – after you’ve paid your bills. Second, consider consolidating your credit card debt onto one card – or moving a balance from one card, to one with a lower interest rate. Some people are in a constant cycle of moving to the next 0% interest rate card. This can be a pain, but you’ll save a lot of money and buy yourself more time to pay off the debt. Third, start making double payments. If the calculated minimum payment is only on the accrued interest, then you need to make a double payment to hit the principle of the debt. By finally hitting the principle and discontinuing use of the card for purchases, you’ll see that balance begin to drop.
Managing Your Credit Card Debt
Interest rates are one of the keys to managing credit card debt. If you have a high balance on a high interest credit card, you are spending a lot of money to ‘borrow’ that money from the credit card company. Additionally, the minimum payment that the credit card company calculates for you is only based on accrued interest, so if you only pay that, you’ll never reduce your debt. If you have decent credit and some credit card debt on one of these high interest cards, you should consider applying for one of the many 0% interest rate cards that are out there. Be wary, many of these 0% rates are introductory, but paying less money to maintain your debt is your first step towards managing and eliminating credit card debt.
Paying Too High Interest? Look For Credit Card Consolidation
If you can, you should consolidate your credit card debt. This means moving the balance from your high interest credit cards onto a single card with a lower interest rate. For instance, if you have about £200 on each of your credit cards that have interest rates between 11% and 22% and you move those balances onto your third card which carries a 5% interest rate, the money you are saving on your interest payments to the other credit cards will allow you to whittle down the principle on all of your credit card debt. Of course, in order to make this really work, you need to cut up your old high interest credit cards. Don’t fool yourself into keeping them for an emergency – get rid of the temptation so you won’t dig yourself another hole. To compare low interest credit cards, visit www.themoneyexpress.co.uk.
Using a HELOC for Credit Card Debt Consolidation
Battling overwhelming credit card debt can be stressful and almost impossible. One way that many homeowners are solving their credit card debt woes is by taking advantage of the equity built up in their home and the low interest rates being offered today. If you take out a home equity line of credit, you can get a very low interest loan that can pay off your credit cards. Yes, this does become another bill you need to pay, but you’ll be saving so much money on the interest payments that you’re no longer making, that you’ll be able to pay this HELOC off and soon be credit card debt free. If you go down this path, don’t make the mistake of keeping old credit cards around. Eliminate credit card temptation by living on a cash basis whenever possible – it will keep you honest!
Using a Credit Card Debt Relief Company
Nowadays, the debt relief industry is growing in leaps and bounds. Millions of Brits have debt issues – or are over their heads with credit card debt, which is why they seek out credit card debt relief agencies. These people will help negotiate lower interest rates in exchange for a regular monthly payment. In many cases, you’ll send your money to the credit card debt relief agency and they will disburse it to your creditors. You’ll still get statements and you’ll watch your balances drop until they are ultimately paid off. Many of the agencies are reputable and will truly help you get your debt under control.
How Credit Card Debt Affects Your Credit Report
Credit card debt can help or hurt your credit report. Obviously, you need to be making at least your minimum payments on time. The second important thing is to not max out your credit cards. You should always have available credit because then you are sending a more responsible signal to the credit reporting agency. The best ways to manage credit card debt in terms of your credit score is to either maintain some available credit, or pay your debt off entirely and on time.
3 Roads to Credit Card Consolidation
If you’re overwhelmed by the credit card companies calling every month to harass you about late payments, you may need to consider making some drastic changes towards credit card debt relief. The first thing you need to do though, is simplify your life by consolidating your credit card debt. You can do this in one of three ways.
Home Equity Loan – You can take out a low interest home equity loan or line of credit and pay off all the credit card debt in one fell swoop. Yes, you now have another payment to make, but in all likelihood it will be much lower and easy to keep up with.
You can approach your bank, or another lender about a low interest personal loan to pay off your credit card debt. If you have good credit, this shouldn’t be a problem for you – but if you don’t, do not saddle yourself with yet another high interest loan.
Consolidate your debt onto a single 0% interest or low interest credit card and then make double payments to ensure that you’re paying down the principle of your credit card debt.
Benefits of Credit Card Debt Consolidation
The benefits of consolidating your credit card debt are many, with one of the most important being the peace of mind you’ll have when you need to make just one payment a month, all while getting in control of your credit card debt. If you have good credit, you can also benefit by being able to negotiate a lower interest rate. After all, the 0% rate is usually introductory, but depending on how much money you bring onto the card, the credit card company may respond by offering you a lower interest rate. No matter what, getting in control of your debt and your spending, although hard to do at first, will eventually offer you a great sense of accomplishment.
Get Free – Eliminate Credit Card Debt
Remember, if you are buried under credit card debt and you can’t make payments, you are doing yourself and your creditors a disservice. If you can’t meet the demands of your bill, you need to seek help. Don’t stick your head in the sand and damage your credit score and create worse problems for yourself – take control. If you need to seek the help of a credit counselor or credit card debt relief agency, don’t be ashamed or embarrassed, just do it. If you need to scale down your lifestyle, your type of car, your apartment – talk to you landlord and start looking for a vehicle you can really afford. By taking control of your financial destiny, you’ll be able to make your dreams come true without the stress.
Using a Bank for Credit Card Debt Relief
Your bank may be the answer to your credit card debt woes, so don’t overlook them. Many banks offer special programs for people who want to pay down credit cards. As the home equity loan business booms, banks need to compete, so they have low interest or longer term loans that can help. Go to your own bank first and speak with a representative. See what your options are. In many cases, you can even set up automatic payments from your bank account. If you strike out with your own bank, hop online and look around at some of the lending sites on the web. Chances are, you’ll find a bank that can help you. Make sure they are a reputable lending institution and that the interest rate is lower than the ones you are currently battling.
Why pay more when you can pay less?
www.themoneyexpress.co.uk/money
Simples.
What is the purpose of student credit cards?
I mean, I understand the concept of building credit and everything, but what is the point of student credit cards? What is the purpose? I’m sorry if this is a silly question, but I don’t really get it.
And can you trade them in after you’re no longer a student for a “real” credit card? Do people just keep them forever? I always thought closing accounts lowered your credit score?
Answer
Student credit cards offer students with little or no income the opportunity to prove their creditworthiness. They tend to have higher interest rates than standard credit cards since students pose a higher risk of default. But the credit card companies want to gain loyal customers early– and see college students as a great opportunity.
Many BIG issuers have gotten into the ‘student credit card’ game. To see a complete list, visit:
http://www.asapcreditcard.com/student-cards.html
When you decide to upgrade to a ‘regular’ credit card after school– don’t worry too much about closing the old account. Although it will have a slightly negative impact– it’s only short-term.