Credit card debt management is very essential if you want to take control of your finances. It is common for most Americans to have more than one charge card. Cards have been made very accessible that almost anyone from all walks of life can afford it. However, some just don't have the discipline to use this plastic card wisely that many are suffering from overwhelming debt problems.
Everyone should remember that credit of any kind, big or small, if mismanaged, will always result to escalating interest charges. We have listed some effective steps in credit card debt management to help you avoid stuck in your debt.
Assess all your cards
Gathering all your credit bills and statements will keep you updated in your credit status. If you don't have them at hand, you may check your account online to access you past and present balances and transactions. Though it maybe discouraging to see all your dues displayed to you at one time, but at least you are aware of it. Tabulate your card and list down their respective balances, payments, interest rates and available balances left. Again it maybe intimidating to see all your credit dues at once, but this is a sound step for credit card debt management.
Consolidate your debts
This is yet another effective way of credit card debt management. Check which among your creditors offer the lowest interest rate. If you think other companies offer rate much lower than your current one, then apply for transfer of account. There are major card companies that offer great deals like full zero interest rate for your first year of payment. For companies which don't allow balance transfers, just transfer your account with the highest interest rate to a lower one. Transferring your accounts with the highest rate to a lower one is a sound step to take.
Prioritize your monthly dues
Good credit card debt management includes prioritizing payment dues where you first pay off loans with the highest interest rates. Credit card debt management encourages setting aside double the amount of your monthly dues if you want to be debt free the soonest possible time.
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