If your debt looks like a mountain and your budget feels like a shovel, you probably feel like it will take a miracle to get rid of your debt for good. Check out these 5 tips to lower you monthly credit card payments!
#1 It NEVER Hurts to Ask:
It only makes sense to ask the people you owe for a break. Compile a list of all the people you owe and the amount you owe them. Then, sit down and create a workable budget. Once you have your monthly spending budet in place, it will be easy to determine how much you're able to pay to each creditor. Call each creditor and let them know you're willing to pay the debt but can only afford to pay $X. If the customer service rep says no, don't fight or argue, simply ask to speak to a supervisor. BE AWARE, sometimes a creditor will reduce your monthly payment and/or iterest rate for only a short period of time. Make sure to get any agreement in writing, on company letterhead, before making a payment.
#2 Transfer balances
If your credit score is good, you can often get a balance transfer credit card with a lower interest rate than your other credit cards. Sometimes you can even get an extremely low introductory interest rate (as low as 0% in some cases) and use the introductory period to make interest-free payments on your debt. BE AWARE, these low introductory rates are just that...INTRODUCTORY! They will expire within a few months to a year most of the time, and chances are the interest rate will go up drastically after that introductory rate expires. Make sure that you have enough in your monthly budget to significantly pay down or pay off these debts during the introductory period or it may not be a good deal.#3 Debt Consolidation Program
Consumer credit counselors are better skilled at negotiating lower interest rates and payments from your creditors. Enrolling in a credit counselor's Debt Consolidation Program, will allow you to get lower monthly payments making it easier to pay off your debt. Credit counselors can also help you make a budget and teach much-needed money management skills.
Debt Consolidation Programs allow you to consolidate all of your unsecured debt into ONE LOW MONTHLY PAYMENT and offers the following benefits.
- PAY LESS: Better repayment terms are offered by most creditors. Most will lower interest rates, wave late and over the limit fees AND bring your accounts back to current without making up those missed payments. This can save you thousands over the life of the debt!
- PAY OFF YOUR DEBT FASTER: You’ll be able to pay off your debt in three to five years rather than the average 25 years it could take without our program.
- REDUCE YOUR STRESS: Our customer’s are relieved when the collection calls disappear.
- ONE EASY LOW MONTLY PAYMENT: Your credit cards and other unsecured debts are consolidated into one monthly payment so you don’t have to juggle payments.
#4 Debt Settlement Services
If you cannot afford the payment required by a Debt Management Program, Debt Settlement may be the answer.
Debt Settlement is a program designed for people:
- Who are starting to become delinquent on their payments
- Some or all of their debts have gone into collections
- DO NOT want to file for bankruptcy
Our clients:
- Have a substantial reduction in their monthly payment
- Save thousands of dollars in both principal and interest
- Are DEBT FREE in 36-48 months
Debt Settlement can help with the following types of debts:
- Credit Cards
- Lines of Credit
- Medical Bills
- Unsecured Loans
- Collections
- Repossessions
#5 File Bankruptcy
There are times when the debt you owe is just too much to pay. In this case, you might consider filing bankruptcy. The new bankruptcy law prevents people from abusing bankruptcy. It requires an income-debt comparison in addition to consumer credit counseling before you can file bankruptcy.
Chapter 7 bankruptcy will allow you to completely wipe out certain debts while Chapter 13 bankruptcy will create a payment plan.
