Simple Guide to Understanding Credit Card Debt Management

You have a credit card for every need! You have the personal one; the corporate one; and, you even have one for your college student. Such a variety of carefree spending choices! That is, until the billing statements start arriving. What did you get yourself into? It is time to take control of your finances! Credit card debt management is the road to a debt free life.

The average consumer has between 3 and 8 cards. Where do you fit in? How many do you have? Are you using one card to pay another card? If you are at the point of considering credit card debt management, you more than likely answered yes to both of the questions. It is time to get control of those cards – it is time to retain the services of a management program. The first thing you need to do is decide which of the various credit card debt management programs is for you. This may take some time, but it also took time to get into this financial disaster. These programs are usually designed to address your unique needs. Determine what your needs are.

Evaluate your financial status:

* Monthly income – Does it vary from month to month or are you salaried?

* Monthly expenditures – Determine your fixed expenditures. Subtract this amount from your monthly income – what are you able to pay towards bills?

* Are you “robbing Peter to pay Paul” when paying your bills?

* How much are paying just to meet the minimum requirements for each card?

* Determine your spending habits.

Calculators:

* Debt Payoff Calculator

* Debt to Income Ratio Calculator

* Interest Calculator

Now you are ready to find a credit card debt management program that will works for you. There are an endless number of such programs and organizations available. Each has different payment arrangements, fees for services, and time frame for debt relief: explore your options.
Can you gain control of your debt without the services of such programs?

* Cut up the “extra” credit cards; especially the high APRs and variable APRs.

* Apply for a personal loan.

* If you are more than 6 months behind in payments, negotiating with the credit card yourself.

Counseling

* Organizations providing professional counseling services. Help you gain control of your finances by teaching you responsible spending practices and budgeting.

Negotiations

* For those who do not have the cash to negotiate settlement offers themselves. Company sets up an account until funds needed for settlement are reached.

Credit card debt consolidation loans

* Loan designed to pay off debts by consolidating into one payment.

With so many options available, you will be able to find a great one. Categorize options and match your needs. Relief is on the way.