If you need to Reduce your Credit Card Debt and don’t know what to do, then this article is for you. I am not bothered how many credit cards you have, or how you got in strife. This is a no nonsense guide for you with loopholes and advice to get you out of paying them and get yourself back on track in 24hrs.
Using a credit card for your spending can have many benefits, these benefits may include added legal protection, travel insurance, cashback or collecting loyalty points at your favorite shops. However if you don’t pay your credit card bills off regularly in full each month this debt can get quickly out of control. Here’s how to stop that happening.
If you are struggling to pay off your credit card bill, the first thing you should do is
- Contact your credit card provider to discuss your problem as soon as you realise you have got a problem with paying the bill. They may well agree to let you pay a reduced amount for a while.
- Also make sure that you ask for any interest they are charging on your outstanding balance is frozen so that the credit card debt does not go up even though you are paying money to pay it off.
- Generally speaking it is not a good idea to increase the limit on your credit card when it has outstanding credit debt that you are struggling to repay, as this is highly likely to get you into even more debt with your credit card company.
Reduce your Credit Card Debt by the end of today. Read this first
Before I start though, I know there are quite a lot of people who are in debt and just fed up with the calls,texts,letters and harassment. The good news, is there are companies in Australia that can help you if in debt and you don’t really know where to turn. So if you need help today and just need this fixed click here
Credit card debt can be very expensive. Currently bank base interest rates are the lowest rate they have ever been at 0.5%, despite this the average interest rate charged on a credit card is 18% APR (annual percentage rate) though this can be as much as 50% APR depending on the card. Transferring your balance to another credit card that pays a lower interest rate may help reduce your monthly payments.
One of the option for borrowers with existing credit card debt is to move it to a balance transfer credit card. These cards offer a period in which no interest will be charged on that debt, meaning that every penny of your repayments goes directly towards reducing the size of your original debt. You will need to pay a fee to transfer your debt over, usually around 3% of the balance transferred (subject to a minimum fee level), so if your outstanding balance is $1,000 it will cost you $30 to switch. These balance transfer credit cards are usually only available to people with a good credit rating so you may have to shop around for a good deal depending on your credit rating. If you have debt on more than one credit card, you will need to work out which one to pay off first.
As a priority you should focus on the card with the most expensive credit card debt first. If, for example, you owe $1,000 on a card charging 19% annual interest and another $1,000 on one charging 34% annual interest, concentrate on the card charging 34% interest first and pay as much as you can. Once the you have cleared the debt from the expensive card you can then look at paying off the credit card which charges 19%. Make sure you continue paying at least the minimum payment on the cheaper card(s) throughout. Otherwise missed payments will damage your credit rating and you will probably have to pay extra fees.
Do not stop or reduce payments on any loan or credit commitment secured against your house or on rent and utility bills as these must take priority over credit card debts.
You may well find it easier if you are able to set up a Direct Debit for your credit card payments so that will ensure you never forget to pay at least the minimum. In this way you will not be charged a late payment fee, or have any interest-free period on your card removed if you have an interest-free card.
Set up a Direct Debit now, preferably to pay the full amount every month automatically. If you can’t afford this, you can set up an automated payment for more than the minimum, but make sure you always pay the minimum at least.
Reduce your Credit Card Debt by the end of today
It can be daunting when you can’t pay your credit card bills, and making payments can sometimes seem like throwing good money after bad. However it doesn’t have to be like that and there is help out there. So if you need to Reduce your Credit Card Debt by the end of today, follow the above advice.
I also understand many people are struggling right now with no job, kids and making bill payments and need some cash quickly. One tactic I used when I was struggling and needed money, was to spend 10mins a day online using, ‘get paid for your opinion’ websites. Whilst at home or at work, go to the website, pick a survey to complete, click and answer some questions and you get cash or vouchers for Coles, Myers etc. I did it everyday and you earn immediately as they are free to join. The largest free one I used was this one