Debt consolidation is always not easy. And when you are using credit cards which are much better option than cash, you have to take care of its limit. But when you pass the limit on your credit card you know you are in for some trouble. But when credit card debt accumulates to the point where it becomes a nuisance, you just have to do something about it. So here is the nitty-gritty on reducing your debt. You just have to apply the golden (debt consolidation) tips given below to end the debt debate:
- Take care that the card debt is not what is termed zombie debt. In other words, if it is years old, it may not apply any longer. So you could literally go scot-free.
- Haggle. Haggle. Haggle. You have to sit down and negotiate your debt balance with the debt collector. He may even reduce what you owe by 30%.
- Pay off that part of your debt that has the highest interest rate. This way you get rid of the most burdensome half first and then go for the rest of the small fry.
- No matter what happens, remember, you always have choice. You may make a friendly phone call to your credit card company and talk the matter over with them. A middle way can be found between extremes.
- Make a budget and stick to it. Do not spend so much that your budget is ruined. And neither do you have to be so miserly in matters of money that the card becomes virtually a useless entity.
- Tackle your debts by eliminating the extra amount on one card and then another. Never under any circumstances, start the job on many fronts.
- Finally, if push comes to shove, you can always freeze your accounts. And one of the methods of ensuring that you won’t get to use those pesky credit cards again is by cutting them into tiny pieces via a pair of scissors. There! Good riddance to bad rubbish!
Source: The Street