Getting A Handle On Your Credit Card Debt

Most of us have opened a credit card statement and said, "How did this happen?" It's surprisingly easy to rack up a large balance on a credit card, and it is important to not let your credit card debt get out of control. If you think you owe too much, you probably do. Here are some tips to help you get back on top of your credit card debt.

Look for offers, such as 0% balance transfers. This usually entails applying for a new credit account and transferring your existing balance to the new card. With a 0% rate, your payments will go entirely towards paying down your credit card debt. Keep in mind, though, that these rates are usually introductory and for a limited time. Also, be sure not to miss a payment with any of your creditors, as the credit card company can then revoke your 0% rate.

For example, if you owe $5,000 at an interest rate of 14.99%, you would need to pay $451.27 per month to pay the balance off in 12 months. This equals over $400 in interest for the year. If the same $5,000 is transferred to a card with 0% interest, you could pay it off in 12 months with payments of $417.

If you can't find any good balance transfer offers, call your credit card companies and ask them for a lower interest rate on your existing balance. As you already know, the lower your interest rate, the easier your credit card debt will be to pay off.

Most importantly, when you're trying to control your credit card debt, avoid creating more credit card debt. This seems like common sense advice, but it's where many people run in to problems.

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