If you find yourself in the position of having a high credit card balance and are struggling to make the minimum payment, it can seem like you are fighting a losing battle. In this position, it may be very tempting to declare bankruptcy. While declaring bankruptcy can lead to relief, it can also be very unwelcome and impact your ability to apply for new types of credit for years to come.
Thankfully, there are methods to easing your burdens and getting out of debt without going that route. It may be hard and you may have to make certain sacrifices in order to do so. In the end, even though it may be slow going, it may mean that you are able to pull yourself out.
Ascertain how much debt you have
First, you need to ascertain just how much debt you actually have. Oftentimes, depending on how many cards you actually have, you may need to calculate your different balances. You will then need to calculate how much your minimum payment actually is. This will help you to establish just how much you need to pay and see how much your debt will go down each month.
Hide your cards
This one is pretty simple. You need to not add to your debt, or it will expand even more and it will take even longer to pay off. If you have to, cut them up so you won’t be tempted, then order replacement cards once the debt is paid off. Depending on how many cards you have, you may want to close some accounts to further eliminate temptation.
Ask for a lower rate
This may not always work, but it can’t hurt to actually ask your credit card company for a lower rate. Depending on their policies, they may not grant it, but it can never hurt to ask. This one action can potentially save you hundreds and thousands of dollars.
Don’t be down on yourself
You need to keep your spirits high during the process. The fact that you are working on your debt is something to be extremely proud of. Don’t get down in a rut and remember, that although it may take a long time, there will come a time when you will be debt free.
Track how much you are paying off
During the course of paying off your credit card balance should be tracked in real time, so that you can pay off your debt appropriately. This means establishing the practice of monitoring your credit card statements religiously and adjusting your budget as needed.
Establish a budget
See if there are any expenses that you can do without, so that your debt may be paid off in a timely fashion. You may have to give up on some things you wanted and learn money saving practices, but in time, your thriftiness will be rewarded.
Getting into debt is never advisable, but there are ways to get out of it without going the bankruptcy route. It may be hard and you may have to give up something along the way, but when you make your last payment, it will be a huge load off your shoulders.