Minimizing Credit Card Debt through Consolidation and Lower Rates

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Minimizing Credit Card Debt through Consolidation & Lower Rates

Mevish Jaffer

When money is tight and the need to finance certain purchases is absolutely necessary, many individuals find it simple and convenient to charge them on a credit card. The financial independence that credit cards provide allows individuals to pay for large expenses, including their weddings, a home, a new car, and any other unexpected expenses that may arise. However, the financial freedom experienced by most is usually short-lived as charging items on a card can easily become a habitual practice that ultimately leads to consumer debt. This is precisely why millions of Americans all over the country are plagued by an increasing amount of credit card debt.

Unfortunately the current status of the US economy, which appears to be headed towards a recession, makes the burden heavier for Americans trying to achieve credit card debt relief. However, this does not mean that minimizing your credit card debt is not possible. In fact, there are several ways to reduce consumer debt, including searching for a lower interest rate on your outstanding loans as well as a variety of loan consolidation options.

First Thing’s First – Cut them up!

As difficult as it may be to do so, the first step towards debt reduction is to stop using the words, “charge it to the card!” If that seems too daunting, the alternative solution is to cut up those “troublesome” credit cards. While the act may sound somewhat dramatic and perhaps a little extreme, you will be better off once you realize the bigger picture. By getting rid of the “plastic” in your wallet, you also eliminate the risk for getting into further debt. This is because having the credit cards at your disposal means that there is a greater chance you will be tempted to spend more money than you should in order to maintain control of your debt.

You could also opt to simply cancel your credit cards all together. However, if you do so, you must be aware of aggressive representatives who will try their best to retain your business by tempting you with the offer to increase your credit limit or provide you with a zero percentage rate for a limited period of time. It is during these specific times that you have to remember to “stick to your guns” and resist the temptation at any cost in order to finally get credit card debt relief.

Credit Card Debt Help – Solutions for debt reduction

The most popular method of getting credit card debt help is through various consolidation strategies that you can implement on your own. For example, one way to consolidate credit card debt is to search for another low interest credit card in which the total balance on all the cards with outstanding debt can be transferred to. This debt reduction strategy will allow you to gradually minimize your overall debt and enable you to make one monthly payment as opposed to several installments to multiple creditors.

Another useful technique you can deploy to reduce your debt is to take a low interest consolidation loan. This debt reduction method will enable you to choose how much money you can afford to pay on the loan every month until your debt is completely paid off. However, it’s important to understand that you will have to follow a rigorous repayment schedule in order to truly ease the financial burden that goes along with being in credit card debt.

On a final note, remember that you are not alone in your struggle with consumer debt. Countless individuals are in the same boat and have managed to survive successfully, which means you can get out of debt too!  There are also numerous debt management programs offered by qualified credit counseling agencies that you can choose to enroll in. Overall, there are several options available to help you reduce and even eliminate credit card debt, but it is ultimately up to you to take the appropriate steps to make it happen!