Debt Settlement Advice - How to Reduce Your Credit Card Balance by 60%

This is something that happens to all of us. We patiently await for the arrival of the new shiny credit card for which we had recently applied. Rarely do we consider the consequences of possessing such a simple shopping instrument. When the bill becomes due, the monthly minimum is so small that we succumb to the temptation to pay it month after month.

Consequently we use the all-powerful credit card to pay bills that are past due, the irresistible sale items, and we are drowning in debt before we know it. While most of a creditors bill is for the actual purchases made, the interest on the charges has skyrocketed to a point where paying for a simple pair of pants bought for half off now seems like an unreachable task.

If you are only making minimum payments, it will require years and years to pay off even a tiny credit card debt. If you desire to lower or eradicate a large portion of your debt, there is a path available for you in this regard. To facilitate erasing this debt you must first strategize and create a sound financial plan of action.

Collect all of your bills, including the monthly requirements such as rent, mortgage, utilities, food, and all of your credit card bills. Arrange the bills in an order of priority and monthly payment. When organizing credit card bills be sure give the card with the highest interest payment top priority and work your way down to the lowest payment.

It is key to keep in mind that paying just the minimum monthly payment due on a card statement will help to prevent a higher due payment the following month. If you miss a payment, the next statement will include late payment fees, a higher interest rate, and other additional fees and charges. These charges can significantly influence the level of debt you carry on your credit card. Overdue fees are rarely cheap, so it is crucial to always make at least the minimum payment.

After all the bills are arranged according to their importance, determine if you would be able to survive a cut in pay or a reduction of income sources. Ask yourself how much income could you lost per month and still be able to pay your obligations on time. Once you determine this amount, you have found how much "extra" income you have each month. You can then use this extra money to pay a higher amount each month towards your credit card debt. An amount as small as twenty extra dollars a month in payment will greatly lower the amount you owe over time. Remember that the interest rate is what causes your balance to accumulate; therefore any payment that can be made over the monthly minimum will greatly reduce your total overall interest rate. If you create a financial strategy, make a firm budget, then set aside a small amount of your income as "live-on" funds, it is easy to accumulate as much as 60% more money to put towards bills, which will speed your process of becoming free of debt.

If you are looking to hire a debt settlement company for debt negotiation to eliminate your debt, listen to the following recommendation. Instead of trying to find the right debt settlement company on your own, find a debt relief network that is associated with multiple reputable debt companies. To qualify for the debt relief network, the debt settlement companies have to demonstrate a history of effectively reducing and eradicating debt. They also have to submit to and pass an ethical standards examination. By using a debt relief network, you are assured that to be matched with a reputable and trustworthy debt settlement company.

Morgan is a financial professional with a keen grasp on the current state of this economy. She enjoys helping guide others to debt settlement solutions. There are many debt settlement solutions out there, however every consumer should be skeptical of exactly how much a debt settlement or consolidation company can help.

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