Thursday, 25 October 2012 13:16
You may have had every intention of using credit cards wisely like paying them off every month and only using them in the case of an emergency. Even with the best intentions, credit card spending can easily get out of control and then become extremely hard to get under control. If you’ve racked up debt in credit cards, here are some steps to take to gain back control.
Know how many cards you have
Make sure you know how many cards you have and cancel open lines. This will help clean up your credit report and take away any temptation to start using another card once you’ve maxed one out.
Don’t sign up for any new cards
Stores know what they are doing when they offer discounts to open credit cards with them. It may seem tempting to open a new card to get a discount, but if you are already struggling with credit card debt, you shouldn’t sign up for a new one.
Look for low interest alternatives
Find out the interest rates on all of your cards. If you like the tactic, you can pay off the ones with the highest interest rates first. Or, look for low interest rate alternatives to consolidate your debt like personal lines of credit or home equity loans, if you qualify.
Put your savings on hold
If you have money going to your savings account and have credit card debt, it would be best to direct all of your attention on getting debt free and then focus on saving later.
Cut out the extras
Until you have your credit card debt under control, cut back on extra spending. It may be a pain at first, but once you see your debt getting smaller, it will all be worth it.