Managing Credit Card Debt

Not-so-Fantastic Plastic
Credit cards are widely available and can provide a convenient and secure source of funds when used appropriately.  Problems occur when credit cards are used indiscriminately or facilitate compulsive shopping. Another common scenario involves paying large and unexpected expenses with a credit card.  Bills pile up, extra charges add to already high balances, and soon it's difficult to make minimum monthly payments. If you're buried in credit card debt, there is help available.

Getting Credit Card Debt Help
The first thing you must do is stop using credit cards. Using one card to pay another will lead to trouble. Instead, you can help yourself by making a list of all of your credit card accounts. Include the amount of minimum monthly payments, the balance owed, and the interest rate for each card. Add up the monthly payments; if you find that you can't afford to make the minimum payments without maintaining cash based household budget, it's time to consider credit counseling.

Choosing a Credit Counselor
Unfortunately, not all credit counseling services are operating with your best interests in mind. Agencies that promise to erase bad credit should be avoided. Reputable credit counselors work with credit card companies to establish repayment plans. They may reduce interest rates and eliminate extra fees such as late charges. Each payment plan is based on individual circumstances.  In some cases, balances may be reduced.

Building a Debt-Free Future
Credit counselors can help you understand the underlying reasons for overspending. Compulsive spending is often related to emotional issues or stressful situations. Self help groups can provide ongoing support. By managing credit card debt, you can look forward to achieving financial freedom.