After years of decline, America’s credit card dilemma is surfacing again. According to a report by NerdWallet, the average U.S. household carries $15, 355 in credit card debt, coupled with $129,579 in total debt. These figures are alarming, to say the least.
Of course, there is no denying that credit cards offer significant rewards. However, too much of a good thing can be bad as well. Relying too heavily on credit cards can result in uncontrollable debt, as well wreak havoc on your emotional life.
Want to free yourself from the shackles of debt? Here are some effective DIY credit repair tips that you need to follow:
Prioritize your credit card debt. Make a comprehensive list of your outstanding balances and interest rates. Analyze the total amounts you owe to different credit card companies. Depending on your minimum payments and interest rates, develop a credit card debt repayment strategy.
Write down all your expenses to create a monthly spending plan. And most importantly, stick to it. Cut down your expenses, at least until you pay off the credit card debt. Budgeting is a pragmatic approach to living within your means, apart from maximizing your ability to pay off credit card debt.
Use cash instead of credit cards. Eliminating debt requires you to avoid making purchases with credit cards. Above all, using cash will help you keep track of your expenses.
Pay off fixed monthly payments first. Once this is done, make the minimum payments on your cards with the lowest interest rates. At the same time, you can maximize payments on credit cards that have the highest interest rates. This is the quickest way to reduce your debt.
On the other hand, you can choose to pay off smaller balances first. Not only will this credit repair trick reduce debt on a single card, it shows that you are making progress.
If you have a decent credit score, you can ask your creditor to reduce the interest rates. In some cases, other creditors could offer you better rates. Let your credit card company know immediately. It is possible that your creditor will match the offer.
Again, a creditor will meet your request for lowering interest rates if you have been making payments on time.
Consider transferring your credit card balance to a card with a lower interest rate. While this move can help you save your finances, you should opt for this option only if you can make monthly payments in a timely manner.
Remember, you will be charged a transfer fee (usually 3-4 percent of the total amount transferred). Furthermore, check out the balance transfer conditions before committing to this solution.
Seek help from credit repair experts, such as those at QuickCreditRepair. We can help you check your credit standing and resolve your financial predicaments. We are a team of retired loan agents from the mortgage industry who have a deep understanding of how credit works. Get in touch with us now.