Begin year with quick debt resolution
Now that we’re through the hustle and bustle of the holidays, some of us may be entering the new year with some newly acquired credit card debt. The holidays always come with added expenses, which may carry over well into 2017 if we’re not proactive about getting a handle on those debts and paying them off as quickly as possible in order to avoid additional interest expenses.
As much as we might like and wish and hope for our debts to be forgiven and forgotten, it is so important not to ignore the credit card bills arriving in the mail each month, because the debt will only grow and any missed payments can have a negative impact on your credit. Make sure you check your credit card statements when they arrive.
First, make sure they are accurate, and then use the statements to take inventory of your current outstanding debts. Be sure to note the interest rate, the balance, and the current minimum payment for each of your credit cards, and if any accounts are past due. This list can help keep you organized and make decisions about what to pay first, and how much and when payments can and should be made to each account. Be sure to catch up on any late payments and pay off the credit card with the highest interest rate first.
If you know you have racked up some credit card debt that you are worried about paying off, the very first thing to do is to stop using those credit cards immediately. Cut them up if you must, but do not add any additional charges to your account. Next, set a budget. You’ll need to determine how much you can pay towards your debt each month. It is always helpful to pay more than the minimum, which might mean adjusting your spending habits. This may be hard at first, but paying only the minimum could keep you in debt for decades, depending on how much you owe.
To save money on interest you might try asking your credit card company for a lower interest rate or by capitalizing on a 0-percent balance transfer offer. It may take some time, but once you have paid off all your credit cards, be sure to continue paying off your balance in full each month.
Bad habits are hard to break, but spending only what you know you can afford to pay off each month will keep you from repeating the same mistakes that got you into debt in the first place.
If you have found yourself in debt, you should also beware of fast and easy fixes offered by debt consolidation or debt negotiation companies. There is no easy fix to a credit problem, but with patience and diligence you can manage your debt by following the tips above without paying costly fees to anyone else.
However, if you do decide to hire someone, be sure to do your homework, shop around and check out anyone you decide to do business with at www.bbb.org, www.consumerreports.org, or www.ftc.gov.
You also can call the BBB Education Foundation anytime at 713-6416141 if you have any questions about your mounting credit card debt and how to tackle it in this new year.