If you are dealing with high credit card debt and are frustrated by tight finances, then now is a good time to start looking at ways to reduce your credit card debt. There are various options for reducing debt, such as negotiating with creditors, using a balance transfer offer or choosing to go into bankruptcy. Here’s more on each of these options.
- Negotiating with your creditors
Creditors don’t want to have someone stop paying their bills, which is why they may be happy to negotiate with you if you call and let them know about problems paying in advance. If you have been with the company for a long time, you might also want to ask about negotiating a lower interest rate. Doing this could reduce your payment and mean you can pay more on the principle each month.
- Using a balance transfer
Using a balance transfer is another option. There are some credit card companies that offer a 0% balance transfer on new lines of credit or on lines that have been open and in good standing. Those transfers may be set at 0% for as long as 18 months.
If you think that you’ll be able to catch up if you have several months without interest payments accruing, this could be an excellent option for you. If you think you won’t be able to pay off the full amount by the time the offer expires, beware. The interest will be added at the end of the term if the transfer isn’t paid off in full.
- Going into bankruptcy
There are times when bankruptcy is a good option. If your debts are overwhelming and you don’t see your income or financial situation changing for the better in the upcoming months, bankruptcy could give you an opportunity to discharge unsecured debts and get a fresh financial start sooner rather than later.
These three tips could help you reduce your credit card debt quickly, so you can move forward with better financial security. Make sure to look into all your legal options before choosing which steps to take.