September 28, 2016

Overwhelmed with Credit Card Repayments? Here’s How to Get Back on Your Feet

Are you currently in a situation where you overwhelmed by the hefty credit card payments you are required to shoulder? You are definitely not alone. Numerous consumers are facing the difficulties of coming out from such a sticky situation.

It may not be easy to get back on your feet. That is because as you make credit card repayments, you still need to continue paying for other necessary expenses. Prepare to get into tighter and leaner budgets. The best thing to do is to keep your regular income flowing and to find additional sources of revenue.

Here are more ways to overcome the situation:

Getting help from a credit counseling agency

A credit counseling agency can be a truly dependable and reliable party to seek assistance from. These types of non-profit organizations provide sound advice and guidance in starting a workable, effective, and affordable repayment plan. You must trust the agency to help you ease out of the overwhelming financial situation you are in. Before approaching any credit counseling agency, you must prepare or gather all your monthly billing statements like credit cards, utilities, mortgage, rent, and grocery bills. You will also need to provide a copy of your regular paycheck. Doing so will help the agency determine and assess your regular income and monthly expenses. The information will give your counselor ideas on what types of solutions and assistance your situation requires.

Debt management plan

You might need a debt management plan. It would be helpful if you intend to put your interest rates under your own control and you need a manageable payment scheme that you can really afford. Fortunately, such plans are now more popular and have become more common.

If your credit card accounts have maxed out and are already put under a debt management plan, your creditors will be forced to provide significant discounts or to scrap fees. They will even be inclined to waive penalties and even lower/eliminate interest charges. However, you may be asked to temporarily avoid the use of any consumer credit and to make regular payments to the credit counseling agency, which will then disperse the amount to your different creditors.

Resisting the need to make credit card purchases

As you try to get back to your feet while trying to handle and overcome your overwhelming credit card repayments, you must resolve yourself to resist the urge to use your credit cards for the meantime. How can you possibly overcome the situation if you keep on going back to the loop again?

It may be advisable to dispose your plastic cards completely. You may also opt to use debit cards as replacements. How about taking the discipline to use cash in every transaction and buying only merchandise that you can afford to pay for in cash?

It will certainly help to arrest the growth of your credit card debt while you work on climbing out of your debt hole.

As a credit card debt consolidation specialist, Andrew has helped many people to deal with overwhelming debts. He is now sharing his learning in blog posts hoping to help others.

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