credit credit card

How To Handle Credit Card Debt After Bankruptcy

Millions of Americans are still paying just over $1,000 per month in late fees and penalties for their credit card debt. If you’re one of them, a recent bankruptcy may well be taking hold of your head and getting into your heart strings. So start getting pre-approved for a credit card debt consolidation loan. If you decided to get a credit card debt consolidation loan, before you even start looking for a loan, ask banks, credit unions, etc for help in getting a debt consolidation loan. That way, by paying off each of your debts within a few months, you’ll be on your way to rebuilding your credit. And once you get on that financial road back to good standing, you’ll show your mother, and your friends, that you are willing to take that hard road with no excuses.

How to take control of your credit card debt

One of the first things you will want to do when you find yourself in the middle of a credit card debt consolidation loan is to identify exactly what your ‘collection rate’ is. For most credit cards, the amount of the ultimate consolidation loan’s maximum monthly payment is ‘the principal’, or the percentage of the loan’s balance that you carry over from one month to the next. So for example, if you owe ‘3330, the ‘means’ of getting a debt consolidation loan is ‘35%. So if you carry over 12-18 months of debt with the ‘means’ of setting aside 30% each month in the ‘means’ line, you will owe a total of ‘11238, which would be ‘35120. This means if you spend the average of 36 months on credit card debt, you still owe ‘3560, which could make you 138 – 138% debt-free, which is ‘$2,437,392.60. That should give you a nice education in credit card debt reduction.

The key

The second thing that you’ll want to do when you start thinking of taking that credit card debt consolidation loan under control is to take a couple of first-year classes in controlling your finances and figuring out exactly what is on your financial report. Here’s what you should know.

1. Lenders like to watch you. All credit cards make money. When borrowers default, the company makes very few ‘savings’ and takes the money it’ll have the money to pay you back.

2. Forgetting about it. Don’t overextend yourself to debt. There is nothing wrong with that. When you can afford to pay off the credit card debt, spend it.

3. Stop spending money.

4. Stop letting others take advantage of you.

All you have to do is realize that you don’t want to be strapped down and dependent on credit cards to help you out of trouble. If that doesn’t work, try to turn that debt into something you can enjoy and not go into debt.

Start paying your bills on time. When your credit card bill comes, make sure it is paid on time each and every month. After that, make a list of the items that you will have to pay on monthly and place them in a tidy folder for an easy reference. Then figure out a way to pay off the balance each month. If you’re a debt-burderer, go for a prepaid credit card. The whole ‘first year’ thing sounds nice and silly before you spend all your energy in the kitchen doing chores until you have nothing left to live for.

If you don’t want to have to deal with debt, work on setting it aside, and try to pay off the credit card debt. You have to. You’ll be glad you did.

How To Reduce Credit Card Debt When It May Not Be Necessary

There are times when you feel like you just can’t seem to pay your credit card bills or that you need to use the cards for cash advances if you don’t have the money yet. So, when it comes to trying to pay off your credit card debt or just keep up on your monthly credit card bills, knowing you’re able to if you have several credit cards may be of some help in some circumstances.

A good rule of thumb is that when trying just to keep up with your credit card bill and to pay off these cards one month at a time, the loans for those accounts will need to be paid, but the loans must be for things that you can afford to pay off on an ongoing basis.