Pay Off Your Credit Card Debts Without Debt Consolidation
The worst thing about credit card debts is that they keep on rising very fast because of the high rate of interest involved with the same. They can ruin your financial life if you don't take proper action at the right time. If you are now finding out a way to pay off these debts, you have probably realized that paying the minimum due does not reduce the total balance. When people lose control of their finances and debts seem to be impossible to be paid off with their current income, they usually consider availing the services of a
debt consolidation company. However, it is important for you to understand that there are still several other ways to pay down your credit card debts fast. Following is a brief rundown about it.
Inform Your Credit Card Company
When debts take a horrible shape – something that you possibly cannot afford to repay and bankruptcy seems to be the only option for you, the first thing that you must do is to inform your credit card companies about the specific financial situation you are in. don't forget to mention that you are on the verge of bankruptcy. These companies have seen so many bankruptcy cases and they are well aware of the fact that they wont be able to get even a single penny if you are declared legally as bankrupt. If they find that your situation is genuine and you are really suffering from hardship, they will try to encourage you to make payments by restructuring the debt on much favorable conditions, such as lower rates, no penalty, and other such things.
Balance Transfer
Another great way to pay off your high interest debts is to transfer the balance to a low rate credit card. It will provide you good instant relief, making things much easier for you. Credit unions probably make the best place to get a low rate credit card. If you play the balance transfer game wisely, it will dramatically help eat away at your principal balance.
Set Your Priority
If you are determined toward paying off your credit card debts, you are recommended to make a spreadsheet of describing the details of debts on each card you own. The details must include interest rates, minimum payments, balances, your credit limit, penalty charges, and other such things. This will help you set your priority. You will get to know which card you should pay off first. For example, you can start by making payments for the high rate debts, such as through transferring the balance to a low rate card. After that, you should try to make double, triple payments on other low rate debts. This will speed up the repayment process and very soon it will put your finances back on track, that too, without using any debt consolidation program.
While you are renegotiating the terms for credit card debts, you should also focus on various annual and monthly fees. Try to convince the lenders to eliminate such charges.
