Credit Card Debt Help

If you use a credit card, here are several tips for how to keep your credit card debt low, and how to get help with paying off credit card debt over time.

Use credit cards wisely
If you already have debt on several higher interest rate credit cards, a very effective way how to control your credit card debt is to find a credit card that has a zero-percent-interest transfer offer and that has no balance transfer fees. Once you transfer the balance from your higher interest rate credit cards to the zero interest rate credit card, don’t use the zero rate card again, since under current practices the credit card issuers will apply your monthly payments to the zero-percent balance and not your new purchases, which will be at the higher interest rate. And while you do carry a balance, it helps to keep the balance on any credit card below 30 percent of your credit limit or you might hurt your credit score.

Be sure to open your mail
While a letter might look like advertising, a letter from your credit card company might be a notice of an increase in your rates, new fees starting, or a reduction in your credit limit. Issuers usually provide an opt-out clause in this letter, which allows you to stop using the credit card and pay off the existing balance under the old payment terms.

Five find suggestions from Consumer Credit Counseling Services. Continue.

Contact your lender
If you are not satisfied with account changes, new fees, or if you have simply made an error in paying your  credit card bill, call the company, ask for help, negotiate if need be. Usually the best way how to get the most attention is you may need to go above customer service and talk to a customer-retention person or a manager for help and assistance. You just need to ask for them. Also, you may want to strongly consider sending them a hardship letter. Read more.

Be aware of “tricks and traps”
These include the practice of increasing credit card rates for existing balances, counting payments as late payments if they arrive on a weekend or holiday, applying your monthly payments to the lowest interest rate debt and charges first (such as balance transfers). You need to read the fine print as mentioned above, call the company and ask for how to remove the fees, lower the increased rates, and ask for help. Do not accept these tricks.

Take advantage of federal government help with paying credit card debt
The recent government bailout of banks, financial institutions, and other lenders has added additional pressure on credit card issuers to settle outstanding debt. You may be able to take advantage of this to help your personal situation. More.

Select the best credit card
Be sure to select the best credit card for the type of borrower you are. Review the rewards cards and see how they work, select the best interest rate, and never be afraid to call the credit cards and ask for help in trying to understand their terms.
 

Taking these steps will help ensure you keep your credit card debt manageable, and help you pay it off as efficiently as possible over time. Also find the top three tips to becoming debt free from a leading publication.