Credit card debt counseling aims to provide a realistic way of dealing with debt that has a nasty way of creeping on most credit card holders. The high interest rates and late fee penalties charged by credit companies makes this debt doubly difficult to manage.
A good way to handle credit card debt is to move into a weekly repayment mode. It is easier to clear the weekly card spend than the monthly bill. Weekly payments also reduce the amount of overall interest on credit cards because credit cards charge interest literally by the hour. Also, the weekly credit card bill seems less prohibiting than the monthly bill.
The credit card owner can also seek advice from the Consumer Counseling Center of America. This self-governing, non-profit organization aids people in serious financial trouble by providing them access to credit counselors. These counselors review the debt load and prepare an action plan. They also get in touch with the creditors to negotiate the interest rates and monthly payments. In addition, the CCCA offers other useful services such as bringing past due accounts up to date, stopping creditor harassment, keeping payments current and settling seriously overdue accounts.
In order to gain maximum benefit from institutions such as the CCCA, it is vital to exercise financial discipline. Those who have piled up huge credit card debts must curb their shopping impulses. No debt counseling can succeed unless an individual cuts credit card purchases. The individual can do so by canceling all credit cards but one for use in emergencies. This credit card should have a low credit limit and low interest rate, and should be used only in emergencies.
A good practice is to transfer credit card balances to the card company that offers the lowest interest rate. The individual should also keep track of 0% interest balance transfers. Such limited-time offers are very useful in slashing interest repayments.
However, the individuals should be careful when dealing with organizations that promise to erase credit card debt at a relatively ‘small’ fee. There are hundreds of individuals who have been taken for a ride by these self-proclaimed credit ‘doctors’ and repairers. The individual must examine the background of debt counselors carefully before taking their help.
Ultimately, it is the individual alone who is best suited to reduce credit card debts. Make sure that you put together a sensible budget and stick to a defined spending pattern, and you will not have to worry about credit card or any other debt, and can live a carefree, debt-free life!