This article is about Credit Card Debt Relief. Credit card debt is one of the major concerns for people who have gone through the crisis. However, it is not impossible to come out of the debt-situation if you can pay off the amount that is due to the creditor. Even a simple step like change in your spending habit can result in credit card debt relief. There are many ways to get relief from credit card debt – some directly and others indirectly.
Plan out for debt relief
You can always plan out your purchases and use the credit card to the minimum. You should keep a record of the expenses you are making through credit card, if any, and try to cut down on those expenses as well as your overall budget, at least till the time you clear most of your debts. Moreover do not make any large purchases during this period of time, which is supposedly short-lived.
Strategically borrow money
There are a number of dependable sources from where you can borrow money to consolidate your debts. One such source is your life insurance policy. There you have an option of paying through installments without having to pay the interest. You can also borrow against your 401k, the retirement savings plan in the U.S to pay your credit card bills although be careful it is not done repeatedly.
Another way of repaying debt is by borrowing against your home equity. However you should go for it only when you have a sufficient amount of equity to save you in the future. Finally, you can borrow from close friends and family. But be very professional to repay the family loan on time and keep everything in writing.
Refrain from any extravaganza
If you have some recurring expenses such as some club membership or gym membership etc., which needs to be renewed every year, you should not do so until your debt is repaid. Buying expensive food, clothes and any other recurring and personal extravaganza should also be avoided during this period.
If you have a car, for example, try to use it to the minimum and use the public transport instead. This way you can save up a huge amount of money. This money can be used for paying the credit card debt, which would be your present priority. Even a short trip can be avoided for the time being.
Negotiate with your credit card company
This requires a good deal of negotiation skill, but if you are successful, you should consider as a huge financial relief. You can explain the situation to your creditor that you cannot pay the entire debt amount together. You can also request him to pay in parts and make the amount as minimum as possible.
Keep yourself updated
Learn the various money management methods to get much relief and survive smartly even when you are going through a big financial crisis. There are good books available in the Market on similar topics and many websites that talk about money management and ways to repay loans. Based of these chalk out a budget and monitor your finances.