Credit_Card_Debt_Reduction_-_3_Tips_To_Lowering_Credit_Card_Debt

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

Word Count:
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.