5 Ways to Tackle Your Credit Card Debt

by Jack Reed
Oak View Law Group

credit card solutionsMost of the credit card holders, at some point of time, find themselves trapped under massive credit card debt. The use of credit cards is somehow luring and tempts the consumers to make unaffordable purchases. In such a situation, they frantically explore the possible options for debt relief. So how do you go about shedding your debts? One option that is favored among many debt-stricken consumers is debt consolidation. This is basically the process of grouping your debts together so that it becomes easier for you to pay it off.

Keep in mind the following points to know how you can consolidate your loans and what you should do with your credit card to free yourself from the clutches of debt:

1)      Get as much information as you can on the debt consolidation loan: A debt consolidation loan will help you to pay off your mortgage and credit card debts. Consequently, you can roll them into one larger loan that will help to reduce the interest on your credit cards. Now, after merging all the debts under one loan, it becomes much easier for you to make just one payment. You also have the advantage of using your money that you free up from consolidation towards your debt, thus making you debt free faster.

2)      Determine to make a few lifestyle changes: Face it. Being under huge debt is not the kind of life you would like. Therefore, you should be prepared to make a few lifestyle changes. Avoid unnecessary expenditure altogether. Cut out on eating outside or making impulse purchases. Curbing your desires a bit can go a long way in saving your money. If possible, also look for a second job. You can utilize this income of to pay off the debts.

3)      Stop using credit cards: Yes, you should stop using your credit card. Period. Keeping your credit card out of sight is a good way to fight the temptation of using it every time you step out. If you do not use credit to make purchases, your debt level will not rise further and you will be able to tackle your debts more efficiently.

4)      Make use of a HELOC: If your home has enough equity, you can pay off your cards by taking out a home equity line of credit. You can then repay your equity line over an extended span of time. However, make sure that the high mortgage payments are affordable for you if you have the equity.

5)      Work hard to clear your debts: Using credit cards today has become more of a habit than a necessity. Change your habit of relying too much on credit cards. Remind yourself, aren’t people without credit cards living comfortably enough? It’s all about breaking the vicious cycle of using credit cards. Once you are free from the temptation, you will surely be able to keep debt problems at bay forever!

Being under credit card debt is not the end of life. It is just a hurdle in your finances which can be taken care of by some smart decisions and responsible action. Be pro-active in your approach to tackle debt problems and you will surely be successful in shedding your debts sooner than you imagine. Good luck!

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