Credit Card debt is at the highest levels it has ever been in this country. Some simple tips can help you avoid becoming another statistic:
1. Pay more than the minimum payment each month - The best solution is to pay the entire balance off your card each month. If your balance is very high still try to pay as much as possible.
2. Transfer the balance of your credit cards to low interest rate cards. Most credit cards will offer up to 6 months interest free on balance transfers when you sign up giving you longer to pay off the debt.
3. If you don't receive or care about rewards programs sign up to a credit card with no annual fee. This can save you over $100 in many cases.
4. If you can't control your spending use the new pre paid credit cards or cards that link directly to your bank account so you are using your own money.
5. If you are in serious debt there are a couple of options that might just help you out:
- Talk to the financial institution about lowering the interest rate while you try to pay it off (lets face it they would rather have their money back than have you declare bankruptcy)
- Talk to a financial adviser about taking out a loan to cover the whole debt at a lower interest rate than the credit cards. This is often called a consolidation loan, where all your debts are put together into one loan.
These simple tips may save you some money.
Good Luck
Tom
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