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First realize that credit cards need to be paid off.
Inform all credit card companies if you are falling behind.
Whether it be losing a job, getting divorced, or uninsured
medical expenses, contact the credit card companies. Without
contact the credit card companies will start loading on the
fees. Most credit card debt turns into twice as much in late
fees and penalties.
Inquire about a temporary reduction of payments, or
even skipping a few payments and adding them on at the end.
Ask about dropping late fees or even cutting interest rates
on all of the credit cards, even the lower interest cards.
Stop using your credit cards. Take all the credit
cards out of your wallet or purse, and leave them at home.
You may want to keep one for emergencies. Cut up the credit
cards if that's the only way you can stop using them. Reduce
the interest rate. Most credit cards charge anywhere from
14% to 22%. You can negotiate with your credit card companies
for lower rates.
Have you had any of your credit cards for a while without
any late or missed payments? Take advantage of being a
great customer. Call up the credit card companies to ask for
lower rates and see what happens. Explain your story and commitment
to lowering credit card debt.
Always pay more than the minimum balances
due on credit card debt. The credit card companies
are not being a friend when they require only a small minimum
payment. They figure this minimum to extend your payments
for ever if possible. Tighten up, and pay as much as you can
above the minimum balance. Stop the credit card offers coming
through the mail every day by demanding that the credit bureaus
stop selling your name and address.
Consolidate your credit cards onto one or two cards at
the most. Combine debts onto one or two of the lowest
rate cards, if you've got some credit room left.
Important Notice! Creditors
have been required by law to have raised minimum monthly credit
card payments by January 2006.
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