Strategies for Dealing With Credit Card Debt

The consequences of not paying your credit card debt can range from minor to severe. For example, missing one or two payments can cause late fees being added to your credit card balance. If you miss more than two payments, you’re at risk of having your credit card account frozen, having your balance forwarded to a collection agency. On the severe end of the spectrum, you can end up in court if one or more of your creditors exercises their legal right to sue. The worst-case scenario is wage garnishment from your primary sources of income.

 Strategies for Dealing with Credit Card Debt

Calculate the total amount of credit card debt you have from all sources. This includes closed credit card accounts that are still showing a balance and those reported to collection agencies. Once you’ve figured out the total amount of credit card debt you owe, the next step is to figure out how much you can realistically afford to pay. Add up the total of your monthly income minus expenses like rent, car payments, and other expenses. If you don’t have enough money to pay your credit card debt after making these calculations, it’s time to contact your credit card company.

Set Up Auto Pay

When you contact your credit card company to make payment arrangements, most of them will require some form of guaranteed payment like auto-pay. Setting up auto-pay means that your monthly credit card payments come directly from your designated financial account on a specific day of the month. People who have auto-pay setup are less likely to miss their credit card payments because they automatically post to the account each month. After reviewing your monthly budget, setting up auto-pay for your credit card bills is one of the best ways to make automatic payments on time.

Negotiate with Creditors

Contacting your credit card company about a growing past due balance is as easy as reaching out to them using one of the contact options they provide. Most credit card companies have their phone number or website printed on the back of the credit card they issued to you. Talk to a billing representative to discuss your options for repayment. If your account hasn’t gone too far into the red, credit card companies are usually willing to make a reasonable arrangement. Each credit card company has their own unique policies and procedures for handling past due accounts. Contact each credit card company you owe to learn about their available repayment options.

 Credit Card Debt Relief Programs

If you’ve gotten too far into credit card debt or you don’t have the time or energy to set up payment arrangements with your credit card company, consider credit card debt relief programs like the ones you’ll find at www.FreedomDebtRelief.com.These can help you reduce how much you owe by negotiating payments with your creditors on your behalf. Talking with a debt relief expert is a great way to learn about more options for paying down your credit card debts faster.

 Other Options

In addition to negotiation, other types of debt relief programs include credit counseling, debt management and debt consolidation. Experts typically recommend trying one of those before hiring a firm to renegotiate your credit card agreements. Depending upon how much debt you have and how far gone the situation is; one of these might be easier and less trouble to implement. Whichever of these strategies for dealing with credit card debt you choose, the key is to give it your all and stick with it until the issue is resolved.