Business & Finance Finance

Ending Credit Card Debt

Millions of people are suffering from financial difficulties.  One of the most common types of financial problems you may have is credit card debt.  You should take care to ensure that your credit stays good by reducing your credit card debt.  Everyone needs a credit card, but most people in the U.S. have seven or more cards.  This can create excessive debt and can contribute to a poor credit score.

If you have a poor credit score, you need to evaluate your credit cards.  Part of your credit score is based on your debt to credit ratio.  It is best to have plenty of credit left on your credit card.  Don't run up your card to the limit because this can negatively impact on your credit score.  When a credit card gets maxed out, many people simply open a new account.  This can have devastating results on your credit score as well.

Having too many credit cards with too much debt can be problematic.  Instead, it is best to try to reduce the amount of credit card debt that you have.  There are a couple of ways to do this.  First, review your credit cards and determine which ones have the highest annual percentage rate of interest or APR.  It is best to pay off the cards with the highest APR first because you pay more interest on these cards. 

You can begin to pay down your debt by making larger payments each month.  Simply paying the minimum payment due will do nothing much to impact your debt.  Instead, you're simply accruing additional interest debt each month so it can take years to whittle away at your balance.  Adding even a small extra payment of ten or twenty dollars will help to bring your balance down. 

If you have multiple cards and are unable to make extra payments you need to stop the problem.  One way to resolve the issue and keep your credit intact is to get a consolidation loan.  This loan effectively pays off your credit cards and gives you one affordable monthly payment.  If the debt is too high, you may be able to negotiate a settlement with the company.  This can legally reduce the amount of debt you owe and can shave thousands of dollars off the interest that you would have paid.  A credit specialist can assist you in finding the best option to fit your needs.


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