Getting rid of credit card debt can be done by following three steps. There are many options out on the market that offer credit repair. However, these options do not get to the root of the problem. As a result, you may find yourself in a constant cycle that causes you to work with credit repair agencies. Review these three ways to eliminate credit card debt and/or keep it at manageable levels.
1. Apply For A Balance Transfer
Balance transfers allow you to move your outstanding credit card balance from one credit card to another. Sometimes you may have to pay a fee for this. However, the fee can be minimal when you consider that most balance transfer terms are not subject to interest for a certain amount of time. The important thing is to eliminate or reduce your credit card balance to manageable levels before the interest rate increases.
2. Consider Debt Relief Options
Credit card companies do not want you defaulting on your payments. Any amount that you can pay towards your balance can keep you from going into default, missing payments, or your balance from being sent to a collection agency. You can contact the credit card issuer to apply for relief options. These options enable you to continue making credit card payments and can even reduce your interest rate for a limited time. Many credit card issuers are even providing relief if you or your family has been affected by the coronavirus pandemic. Let the company know this, and your fees can be waived, or your payments deferred.
See my reference in What Is A Credit Card Charge Off?
3. Create a Financial Workout Plan
Working with a financial coach can help you get your budget on track. Creating a workout plan with a trusted accountability partner can help you find additional relief options, ways to establish a budget, build your savings, and how to build your personal wealth.