Tips to help deal with credit card debt
Don't ignore the bills, however much they are bills don`t go away but credit
companies will be happy to help if you let them know your financial situation.
If repayments seem unaffordable, talk to your lender many will accept part payments.
If you are over your head in debt cut up all credit cards at once and stop spending
until you get your finances in order.
A Balance Transfer
A balance transfer credit card can be the right decision for your finances. Not only are many balance transfer credit card companies offering lowered or even zero percent interest rates, but you might even be able to finally pay down that debt that you’ve accrued.
1. Determine the amount you want to transfer
While most balance transfer credit card companies are willing to transfer larger balances for those with a good payment history, for those that do not have excellent credit, you might find that only small amounts will be transferred. And while this helps, it might not reap the rewards that you were expecting. Talk with the balance transfer credit card before deciding to sign up for their card to be sure that the amount you want to transfer will be allowed.
2. Find out the restrictions
Most of the time a balance transfer credit card company will allow you to enjoy a low or zero percent interest rate when you follow their rules. This means that you should work to understand their rules before signing up. You might not be able to purchase anything on the card for a certain amount of time, or you might have to purchase something within a certain amount of time.
3. What is your time limit?
While it would be nice if balance transfer credit card companies could give consumers unlimited time to enjoy the lower interest rates, this isn’t the case. Find out how long the introductory balance transfer credit card interest rate is good for—the longer the better.
4. Can you get money back?
Some balance transfer credit card companies also offer you money back for new purchases on their card. While you probably won’t get that cash back on the transfer, you can begin to reap rewards for future use. If you think that you may keep the balance transfer credit card for a while, this is a good thing to investigate.
5. What is the annual fee?
When you’re trying to limit your payments, you’ll want to be sure that the balance transfer credit card doesn’t start off with an annual fee as well. Many balance transfer credit card companies do not make a customer pay a fee initially, but some might charge the customer after the initial time period is over.
A balance transfer credit card can help you reduce your monthly payments and get you on the road to a debt-free life, but only if the card is working for you and not against you.
Credit Card Glossary
Grace period
For people who pay off the entire balance every month the first priority in
a card is to be sure it has a grace period and to know the length of the grace
period.
Low-interest rate
People who sometimes have an unpaid balance at the end of the month would want
to choose a card with a low interest rate and a grace period. If there were
no grace period, they would pay interest on the outstanding balance whenever
they use the card.
Fees
Most companies will offer you cards with no annual fee, however you have to
carefully read the declaimer before applying for a card to make sure there are
no hidden fees. Don't subscribe to a card simply because it does not charge
an annual fee. Other fees such, as late fees and over-credit-limit fees, might
add up to a much greater amount in the long run.
Other charges
Almost all card companies will penalize you each time you make a late payment.
More importantly late payment, if it’s reported to the credit bureau can
really hurt your credit history. Some offer protection services against this
fee; others charge a bomb.
Submitted by Garry from Utah