Source: Dumb Little Man
Huge credit card debt can feel like a crushing, impossible burden that you need to carry for months, years, or even a lifetime – but it doesn’t have to be.
With a few simple steps and a good deal of discipline, credit card debt can be whittled down, paid off, and eventually eliminated for good.
Just imagine how good it’ll feel to not owe your hard-earned money to a credit card company. Instead, you’re free to save it or even spend it however you want.Here’s how to eliminate credit card debt:
Cut Up or Cancel the Cards
The absolute first step to eliminating debt is to avoid accruing more debt!
For those who have fallen into excessive spending habits in the past, an absolute spending freeze on credit cards is generally the best remedy. Rather than just telling yourself not to spend, go further – eliminate the ability to use credit cards by rendering them useless.
While calling your provider and cancelling the card can work, many providers will offer extra rewards to entice cancelling customers to keep the card. To avoid this, a great option is to simply cut up the card and throw it in the trash. Just be sure that it is also removed as a payment option from any online stores and recurring subscriptions.
Negotiate with Providers
While the word “negotiate” makes most people automatically cringe, this vital skill can save those in extreme credit card debt.
When a credit customer has high outstanding debt and hasn’t been making payments, the credit card company may start to assume that they will never get their money back. Your angle for negotiation is promising that they can at least get some of the money back if they are willing to offer you more favorable terms or a balance reduction.
If your card has an extremely high-interest rate, start with negotiating that down, as this can often prevent the need for a balance transfer. Negotiate with the company’s representatives over the phone and try multiple calls if needed. Just be sure to get any agreement in writing or many companies will claim they have no record of the deal you worked hard to make.
Note: There are debt reduction companies that will offer to negotiate for you, but beware of scams and hidden fees if you pursue that option.
Consider a Balance Transfer
For customers with very high credit card balances, a balance transfer to another card may do the trick if the original card’s terms aren’t favorable. This method involves finding a new credit card with a lower interest…
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