Managing Credit Card Debt

Credit Cards are part of everyday life for most of us. Whilst they are a convenient way to pay our bills and make everyday purchases, many people continually suffer from Credit Card DEBT.
Getting into debt using Credit Cards is easy to do. If you are one of many who are experiencing Credit Card DEBT, you need to take control of the situation by implementing a plan to deal with it. There are a number of steps you can take immediately to start controlling the situation.

Step 1 – Stop spending! Easier said than done, I know, but you need to ask yourself whether you really need this new item.

Step 2 – If you have more than one credit card, you need to get rid of them all except for one, keeping the one with the lowest interest rate.

Step 3 – Check out new Credit Card offers for those providers offering a low balance transfer rate. Say you owe a total of $5,000 on a card with a high interest rate of 18.99%, you are paying about $900 per year in interest. By swapping to a lower interest rate card of say 5.99%, you would be saving approximately $600 in interest payments per year. There are many credit card providers now offering very low interest rates for balance transfers for specified time periods. Some are even offering an amazing 0%. These can be a great way of minimising interest payments whilst paying off some of the debt. However, once the specified time period ends, the interest rates can rise dramatically. This is an attractive option only if you feel you can pay a large amount off the debt withing the specified time period.