- Personal Finance
Reduce Credit Card Debt Tips That Can Help Reduce Credit Card Debt
Reduce credit card debt is a goal of almost any consumer that has credit card debt. I like most of us have a high balance of my credit cards and am constantly looking for ways to reduce my credit card debt. I know that like most of us I would only use my credit cards when it was absolutely necessary, but in that time frame I some how ended up owing a ton of money on them and now am scraping to reduce my own credit card debt. However, in my journey to reduce my credit card debt I found that the banks are normally willing to work with you to keep the debt out of collections or even worse yet force you into bankruptcy which almost no one wants to file for these days. Here are the best tips that I have found that helped me in reducing my credit card debt.
The best way to reduce credit card debt it to pick up the phone. You might be thinking how can picking up the phone help to reduce my credit card debt? Well that is simple you just talk to the person on the other end and ask for a reduction in your interest rate or if you are in a hardship type of situation you will ask them what they can do to help you out of your problem. Now in some cases this can involve closing out the credit card account and setting up a set monthly payment. In my case when I worked on reducing my credit card debt the plan that my bank offered me was a reduction in my interest rate to 8% with a payoff within a five year time period.
Now you might think that this would be a great payoff time period and such, but if you are trying to reduce your credit card debt even further to the point that you are not going to be in a hardship for a long period of time then you will want to ask to speak with a manager. Now you might not even consider doing this and go with the first plan that the bank offers you to reduce your credit card debt, but remeber to ask to speak with a second person as well. You never know in some cases you will be able to get a debt reduction where the bank will look at your history and reduce the amount that you owe to a more managable amount. If they are not able to do this the manager might even be able to offer you a better plan to reduce your credit card debt with a lower interest rate or even a longer pay off period. Which can be very helpful to many people with the current economic climate.
While you might not think that it is possible to reduce credit card debt you will want to make sure that you pick up the phone and call people. Remember that it never hurts to make a simple phone call when you are trying to reduce credit card debt. You could be shocked at how much you can actually either reduce your credit card debt or how much you will be able to save in interest payments with just a simple phone call.