Did you misuse your credit cards so much that you’ve not been able to keep a track over the balance that you’ve incurred? Most of us have the habit of whipping our plastics whenever we go out for shopping and then it is only when we receive our billing statement that we realize that we’re in the red. Credit cards seem to be one of the most convenient tools but when you start misusing them, they become nothing but debt generators. If you want to negotiate your credit card debts on your own, here are some tips that you may consider.
- Calculate the total debt amount: The total debt amount that you owe should be calculated in the first place. You have to jot down the principal balance, the interest rates and the due dates on which you’re supposed to repay your multiple creditors. Unless you know the exact amount that you owe, you won’t be able to take any step to reduce your debt burden. Also jot down the total monthly income that you make so that you may also know your affordability.
- Check your savings account: Before you take any step for negotiating with credit card companies, you should give a close look at your savings account so that you don’t falter after the creditors waive off a certain portion from your debt amount. The more is your savings amount, the sooner you can get out of debt with ease.
- Curb the usage of credit cards: You should also curb the usage of credit cards lest you keep digging deeper into the credit card debt hole. All that you need to do is to stuff your wallet with cash so that you don’t have to resist to the temptation of using your credit cards. Do away with the habit of resorting to your credit cards whenever you can’t afford things with cash.
- Negotiate with your lenders: The next task should be to negotiate with your creditors. If you’ve been refraining from seeking help of the creditors, you’re at fault. The creditors are the only people who can alter the terms and conditions of your debt accounts in order to facilitate the debt repayment schedule. Tell them the reason that has been keeping you from making timely repayments and wait for their response.
- Make timely payments: Once your creditors waive off a certain portion from your principal balance, you should come up with timely payments on your accounts. You can repay the remaining amount either in a lump sum or in easy affordable monthly payments stretched throughout a long period of time.
Therefore, when you’re knee deep in debt, take the above mentioned steps to negotiate with your credit card companies on your own. Follow the steps mentioned above in order to live debt free.
Guest blog post by Adrian Collins, Financial Writer