Debt Help

6 Tips for Handling Credit Card Debt

Assuming you’re not in danger of defaulting on your credit card payments, there are a few strategies you can use to minimize the amount of interest you pay and get out of debt more quickly.

1. Pay More than the Minimum Payment Due

The minimum payment is usually just a small percentage of your overall balance, so paying only the minimum will keep you in debt longer and cost you more in interest. If possible, try to pay double or even triple the minimum payment each month.

2. Transfer Your Balance to a Lower Interest Rate Credit Card

If you have good credit, you may be able to transfer your balance to a new credit card with a lower interest rate. This will save you money on interest and help you get out of debt more quickly.

3. Contact Your Credit Card Company

If you’re having trouble making your payments, contact your credit card company and explain the situation. They may be willing to work with you to lower your interest rate or set up a payment plan that’s more affordable for you.

4. Consider a Loan

A debt consolidation loan can help you get out of debt by combining all of your outstanding debts into one loan with a lower interest rate. This can save you money on interest and make your monthly payments more manageable

Personal loans typically have lower interest rates than credit cards, so this can be a good option if you qualify. Just be sure to shop around for the best rate and make sure you can afford the monthly payments.

5. Create a Budget

If you’re not already doing so, start tracking your spending and creating a budget. This will help you see where your money is going and make adjustments accordingly.

Take a close look at your budget and see where you can cut back on non-essential expenses like dining out, entertainment, and shopping. Reducing your expenses will free up more money to put towards your debt.

6. Get Professional Help

If you’re struggling to get out of debt, consider seeking professional help from a credit counseling service or financial advisor. They can offer you guidance and support to help you get your finances back on track.

What Can You Do If Your Debt IS in Default?

If your debts are in default, it’s important to act as soon as possible to get back on track. Depending on the type of debt in default, there are different options for getting back on track.

If you have defaulted on a credit card, it’s possible to negotiate a new repayment plan. You can also request a hardship program. Consider a balance transfer to another credit card with a lower interest rate if you’re struggling to make monthly payments.

If you have defaulted on a car loan or mortgage, you’ll need to contact your lender to discuss your options. You may be able to negotiate a new repayment plan or refinance your loan. If you’re having trouble making payments, you can consider trading in your car for a less expensive model or selling it outright to pay off the loan.

Defaulting on any type of debt can have serious consequences, so it’s important to take action as soon as possible to get back on track. If you’re struggling to make payments, there are options available to help you get back on track. Contact your lender to discuss your options and find a solution that works for you.

To learn more about dealing with credit card debt or to find out what you can do if your debt is out of hand, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.

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