How to Control your Credit Card Debt

As we all know the feeling: The bills are piling up, and you are so far behind that you do not want to even open them. If the bills are credit payments and you realize that there is only enough money in your account to make the minimum payment, do not despair. There is hope and you are not alone. The average American family is now carrying credit card debt from $10,000 to $15,000. Today we owe more on our homes, cars, credit cards and student loans than any previous generation has. With all of the debt problems around today you still can get rid of your debt, or at the very least, a significant amount of it.

First sit down with a pencil and paper or in front of the computer and make a list of where you owe money. On your list please note of how much you owe, and what rate of interest you are paying on each of the debts. The biggest debt as we all know will be your credit cards, and the cards with the highest interest rates are costing you the most so you need to work on eliminating those first.

If the majority of your debt is from credit cards, here a few steps you will need to start on. Call the service representative from each of your credit cards and ask if there is anything that can be done to lower the current rate. At times they will agree and offer current special offers just to keep you as a customer. If calling does not work then it is time to consolidate your debt into a single card with the interest rate lower than all of your cards. One good thing to do is to apply for a 0% credit card and pay no interest for a year or the promotional period. Once you get approve, transfer all of your debt to the new card. From there you will notice that any payment you make will go straight to the balance and not the interest for at least a year.

One very important step is to check your credit score. The credit score represents how reliable you are when it comes to paying back money you have borrowed. If you have a high credit score you will easily qualify for a 0% interest credit cards without any difficulty. The credit score range from 300 to 800 points. Anything over 660 is good, and a score over 720 is great. If you credit score is below 660, you will need to spend some time improving it before you can get a better rate on type of loan. There are questions that a credit score affects the premium of your auto and homeowners insurance rate. Please consult with your agent for verification. If you are applying for an apartment lease, ask the leasing agent if your credit score will go into consideration to determine the approval. It is being said that employers are looking at credit scores before the individual is hired, make sure to ask if that is true when you turn in your application. Any action that you take from the information you obtain from your credit score, you will add more money to your savings account which in turn you can pay down your debt.

These are only a few steps that will help you pay down or pay off your debt. Please take action as soon as possible before your debt gets uncontrollable.