Tips To Reduce Your Credit Card Debt

We are all familiar with the story: A credit card user swipes with wild abandon, splurging on the things that he was deprived as a child. He maxes out his credit limit in no time. And then, he misses his payment due date and earns interest charges because of this. Not long after, credit card collectors are on his tail.

These debt problems may not be resolved overnight but it can be worked out over time. The following are some tips on how to reduce your credit card debt and get back on the card issuer's good graces.

Paying off your debts may be easier the moment you stop using the card temporarily. If you have maxed out multiple credit cards, start paying the card with the biggest interest rates. Pay more than the "minimum balance" required as much as possible. There are some credit card issuers may be conservative in estimating that amount.

Think about moving your outstanding balance from one credit card to another that offers a lower interest rate. Competition among cards nowadays is very stiff that transferring balance can cost as low as 0.70 percent per month. Make sure that you read the print though, because some low rates offered by issuers apply only during a certain period of time.

Paying off debt takes time so that a realistic time table should be set up. Though this may seem impractical to a divert the bulk of your paycheck to debt payment alone. Talk to the bank and negotiate an interest rate that is agreeable to both parties. The banks would surely appreciate your effort to communicate.

This may be the right time to use the reward points that you have accumulated. There are a lot of credit card issuers allow the reward points to be converted to cash (or its cash equivalent units) which you could use to pay off your debts. When you have debts under your belt, a little goes a long way.

Set aside 30 minutes of your time and list down ways on how you can spend wisely to save more. You may perhaps skip that daily coffee at your favorite coffee shop, or delay buying that expensive pair of flip flops. Try choosing suspend your gym membership first and start jogging around the park instead. Perhaps you could lessen the use of your car so that you can save on gasoline by commuting to work. Use the money you saved from these practical cost reductions to pay off your debt.