Real Tips to Reduce Credit Card Debt

Reducing credit card debt may be the goal for countless men and women. There are many methods proposed to lessen personal credit card debt on the internet and they vary from unrealistic to illegal! Credit card debt is being assisted by legislation and an increasing awareness among consumers to go lean. Learning how to reduce credit card debt should be an objective for any credit user. The tips below will help anyone discover ways to reduce personal debt with minimal effort.

The Credit Card Accountability, Responsibility and Disclosure Act of 2010 has most consumers waiting to see what happens next as credit card companies scramble for new and improved ways to keep the average person in debt. Increased fees, lower credit limits on new accounts, and less available credit is just around the corner. The CARD act will grant some relief, but it is crucial that users try to lower their card balance as quickly as they can. The best thing for a consumer to do in this economy is just say NO. That is not always a viable option. Many flock to the Internet for get-rich-quick-schemes, but that is never the answer. Instead try these real tips below to reduce your credit card bills. Just one of these methods when used properly can mean hundreds of dollars saved over the life of the credit account.

Shop around for a lower rate card

Sock it to 'em! Anyone stuck with a rate above 15% should be able to find a better card. Big Banks are often seen as the enemy and that is why more Americans are turning to one of the many credit unions in their community. Today, membership is easier than ever. Most credit unions service a wide variety of industries and offer great rates on loans and credit cards. It is easy to find a list of local credit unions. Many colleges and universities have programs for present students and alumni. Most city, state, and federal workers are also eligible to participate in many credit unions, too. If possible, shift the entire balance of the old high-rate card to the new one. It is wise to not cancel the old account, though, if there in no annual fee. This helps the average age of your credit accounts as seen on your credit report.

Consider a second mortgage or HELOC

For those homeowners with some equity in their home, a home equity line of credit or a second mortgage may be a great way to pay off high interest credit cards. In many cases, the mortgage interest is tax deductible and the interest rates on second mortgages are usually lower than credit cards, too. This is a tried and true way to bring down debt fast. Homeowners can also use an online HELOC calculator to see if they might qualify for a home equity loan or home equity line of credit. This is another great way to pay off high rate cards.

Use your tax dollars now

Many taxpayers delight in getting money back from the government each year. They are getting back money which they have allowed the government to use for free throughout the year. This is money that they could have been using to pay off credit cards and save on interest. Each year, try to estimate taxes and if necessary adjust the withholding schedule to bring more money home each paycheck. The goal is to try to get to zero dollars owed or refunded. Use your money now instead of waiting.

Alternative loans

If traditional bank loans are out of the question than try peer-to-peer loans. There are thriving online sited dedicated to connecting real people with others looking to borrow money. A loan application can normally be submitted for free and the end terms must be agreeable to the borrower or there is no obligation to commit to the loan. Many potential borrowers are quite pleased at the great interest rate they get on a peer-to-peer loan.

Try to use as many of these methods to reduce credit card debt. Life is far too short to feel a constant pressure from money concerns. Be smart and make better financial decisions for you and your family. The road to success begins with just a few steps. The best time to start was yesterday, but the second best time to start is today!

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