Credit Card Payment Strategies: Beat Credit Card Debt Nightmares That Keep People Awake At Night By National Association Of Responsible Lending And In

If you are struggling to afford just the minimum payments on
your credit cards, you are not alone. A large percentage of the
people you pass on the street each day are suffering under the
weight of the exact same stress. They are also concerned about
upcoming (or past) due dates and an ever-increasing credit card
debt balance.

You don't have to continue to lose sleep worrying about your
debts, but you do need to take action—today. Little by little,
one-step at a time; you can change your credit situation from an
ongoing nightmare to a bad dream of the past.

Scrutinize Your Expenses

Hard as it may be to face, until your credit card debt is paid
down to a manageable level, you will need to start living
frugally. Start by keeping a daily expense log, detailing
everything from your morning coffee to the monthly electric
bill. Then go through this list, line-by-line, and determine
which expenses can be eliminated and which can at least be
decreased.

Look for New Money

Consider taking a second job, tutoring on weekends, or
baby-sitting. Look around your home for clothes, furniture, or
other items that you can sell, either in the classifieds or
online at sites like Ebay. Return unnecessary recent purchases
for credit back to your card.

Stop Using Your Cards

It is nearly impossible to significantly lower your debt if you
keep adding onto it each month. At the very least, take all
specialty and department store cards out of your wallet and
store them in a safe place (or cut them up entirely). Before you
charge anything to a card from now on, ask yourself if it's
really necessary, and if there's any way to either not make that
purchase or to delay it until you have enough funds to cover the
cost.

Pay Off Your Highest Interest Rate Cards First

After you've pared down every possible expense, sold what you
could, and sought out new sources of income, determine how much
you have left at the end of the month in excess of all your
minimum payments. Then apply all of the excess funds to the card
with the highest interest rate, and continue to do that until
that card is paid off. Start the process again with the
second-highest rate card, and so on. This will pay off your debt
the fastest.

Call and Ask

If you need to send a payment in late, call and let your credit
card company know. Customers who communicate honestly receive
better treatment. It never hurts to call and ask if your
interest rate could be lowered; even half of a percentage point
can make a big difference for someone living month-to-month.

Your credit card company may also have some sort of hardship
program in place for customers who are temporarily unemployed or
who are dealing with a serious illness. If you think you may
have a hardship case, again, call and talk to someone. You may
qualify for a lower interest rate or a few months of grace.

About the Author: Individuals everywhere, looking to get out of
debt and begin investing can turn to the debt aide organization
National Association of Responsible Lending and Investment at
http://www.NARCLI.org. You may reach debt relief and investment
experts via email to Question@NARCLI.org.