It has become easier to find yourself with unmanageable credit card debt. A result of the credit crunch has left many people unable to cope financially. Even making a regular payment to at least pay off the interest each month can seem impossible. You can find yourself with balances that stay the same or increase.
There are ways you can solve your financial troubles and work towards improving your credit score. Many people have managed to pay off their outstanding bills and there is no reason why you cannot be one of them. Read on to discover how you can take hold of the reigns and guide you and your family out of the debt trap.
If you have been ignoring the situation now is the time to stop hiding and be honest about your position. Find all the statements and letters and organize them. You can use a credit score company to see how much you owe to each company and when the account defaulted if you have thrown out the paper work. Make a list of the addresses, account names and outstanding balances so you can see exactly where you stand.
Look at your living expenditure for each month. Be frank and honest about where your money goes and try to find places where you can cut back. Social spending should be looked at and find alternative ways that you can spend less, yet still enjoy life.
It will help if you stay focused on the outcome of your economy drive. It is worth going without a few pleasures as your quality of life will greatly improve once you have paid off all your creditors. Decide how much you can spare for credit bills and stick to a set budget.
Dedicate the spare money from your monthly budget to one debt at a time. Gather up all the information you have about each debt, every letter and every statement. This can be very daunting but it is essential you know exactly where you stand. Find the accounts that you owe the least money on, and tackle those first. Gradually you can clear each debt one at a time, building up to the most expensive ones last. That way you can focus on clearing entire amounts without over stretching yourself. Your debt will be reduced, and you will have fewer companies that you need to deal with.
The opposite choice you have is to make small payments to each company. If you find yourself with some extra money use that to top up your monthly payments, even if the amount is a single dollar. The idea behind this is that every little helps, and slowly you will begin to eat into the outstanding balances. This method will not show you results as quickly, but you will get there eventually. Credit card companies will see you are making an effort and not ignoring your responsibilities.
The only way to completely clear all of your debts in one go is by choosing bankruptcy. This should be used as a last resort, and it is essential that you get the best advice from a fully qualified attorney. Sometimes it is best to clear all your credit card debt in one go, and start afresh.