Credit_Card_Debt_Reduction_-_3_Tips_To_Lowering_Credit_Card_Debt by hashournonos

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Credit Card Debt Reduction - 3 Tips To Lowering Credit Card Debt


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374


Summary:
Credit card debt can be reduced through lower rates or negotiating for reduced balances. With reduced
interest, you can pay off the principal quicker with the same monthly payment. The other approach is debt
settlement, which eliminates part of your debt at the cost of your credit score.


1. Transfer Balances


Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers
last for several months, giving you the chance to make si...



Keywords:
credit card debt reduction, debt relief, debt consolidation



Article Body:
Credit card debt can be reduced through lower rates or negotiating for reduced balances. With reduced
interest, you can pay off the principal quicker with the same monthly payment. The other approach is debt
settlement, which eliminates part of your debt at the cost of your credit score.


1. Transfer Balances


Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers
last for several months, giving you the chance to make sizeable payments on your principal.


If you have several credit cards, choose to transfer the account with the smallest amount. Pay off that
account, then take that card’s monthly payment and apply it to your next lowest balance. Soon you will be
creating a snowball affect, swiftly lowering your debt. Make sure to close paid off accounts to raise your
credit score and keep from adding to your debt.


2. Negotiate Lower Rates


Credit card companies are also willing to lower rates. You can try to do this on your own, but you will have
more success with a debt management company. For a monthly fee, they will lower rates with credit card
companies and handle your monthly payments.
Debt management plans can affect your credit temporarily if your creditors report delayed or reduced
payments. This might prevent you from opening new accounts for a year or more. However, with such plans
you can be out of short term debt in less than five years with a much better credit score.


3. Settle For Reduction In Debt


Debt negotiation is the most drastic step to lower your credit card debt since it has long term affects on your
credit. A debt negotiation company can settle some of your debt with creditors. Lenders will then report the
reduced amount to the credit reporting agencies, which will keep it on your record for seven years. Debt
negotiation is similar to bankruptcy and can prevent you from qualifying for conventional credit for a couple
of years.


Reducing your credit card debt will have long term benefits for you. Less credit means better rates when you
do want to apply for financing, especially with a home or car purchase. No matter which option you choose,
research companies carefully and compare their services and fees.




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