By K. D. Nelson, Professional Accountant and Author of the book "Laws of Managing Credit Card Debt".
During the third quarter of 2018 consumers spent $5.5 billion using their credit cards increasing the amount of outstanding credit card debt to $1.041 trillion, based on the November Federal Reserve Consumer Credit Report. And, 38 percent of credit card users say they carry a monthly balance, according to the 2018 Consumer Financial Literacy Survey, by the National Foundation for Credit Counseling.
How can I payoff my credit card debt?
To provide a solution that will work for you. Here are 3 financial advice tips to help you get out of credit card debt:
1. Seek Financial Guidance.
If your credit card debt is a financial burden it is time for you to seek financial guidance and improve your financial well-being. Educate yourself to learn how you can reduce your debt without filing for bankruptcy or getting a debt consolidation loan. You would be in better shape financially, if you had financial guidance that showed you how to payoff credit card debt.
2. Follow a Proven Plan.
Follow a proven plan that can help you get out of credit card debt and allow you to continue to use your credit cards. You should maintain a budget of your monthly expenses and keep a record of the amount of debt you owe to determine your financial needs. Having a plan would prevent you from getting deeper into debt and accumulating a lifelong financial burden.
3. Use a Debt Reduction Strategy.
A credit counseling agency will setup a payment plan with your creditors and charge you a monthly fee of $35.00 to $50.00 for a period of three to five years. Filing a chapter 7 bankruptcy to discharge your debt can cost $1,500.00 to $3,000.00 in attorney fees. Using a debt reduction strategy provides a solution to help you manage credit card debt and save a significant amount of time and money.
What is a debt reduction strategy?
A debt reduction strategy is a method you can use to payoff your debt. And reduce the amount of interest charges you pay and the time spent carrying a balance.
Source: Laws of Managing Credit Card Debt
How can I payoff my debt without making a financial mistake?
The financial mistakes to avoid when paying off credit card debt are:
- Filing for bankruptcy under chapter 7
- Getting a personal loan to consolidate your debt
- Negotiating a repayment plan with a credit counselor
It is essential that you learn how to manage your debt in order to maintain a better financial future.
The book Laws of Managing Credit Card Debt provides basic financial guidance with proven strategies to help you get out of debt.