How to Reduce Your Credit Card Debt

Unlike what we’re led to believe, credit cards are not “free money.” If you’re not careful, it can be easy to accumulate debt. Digging yourself out of the hole is possible, though.

Major credit card companies charge several percentage points annually on interest, it’s how they earn money. The larger the carried balance, the more money they earn. It doesn’t stop there, though. Many lesser-known guys, usually stores offering their own cards with the lure of “no interest for six months,” can go even higher with rates, so be aware.

Consider Debt Consolidation

A debt consolidation loan can pay off all of your credit cards in one stroke, giving you the immediate debt help you need. First, it’ll give you some much-needed breathing room financially. Secondly, since all of your outstanding debt will be combined into one, easy-to-remember payment, you’ll immediately reduce your monthly flood of bills.

Here are some loan options to consider to consolidate your debt:

If you get a good rate on a personal loan you can use the extra cash to pay off your higher interest loans and credit cards and combine all your debt into one low monthly payment.

If  you own a home you could take advantage of your property’s equity and historic low rates by refinancing your home loan. You could lower your monthly payments and use the extra cash to pay off debt.

If your credit score is low and you’d like help with your debt, a debt management program could be right for you. A trustworthy credit counseling service that can help you take back control of your finances with one low monthly payment.

Don’t wait any longer. Start reducing your debt today. Every day you put this off inches your cumulative charges higher. Although credit card companies will give you a quote on their annual interest rate, they’re still charging you every day you run an outstanding debt outside of its grace period.