Many individuals fall into the vicious cycle of credit card debt. A lavish lifestyle, impulsive spending habits, etc. are some of the prominent reasons why people become debt-ridden. If not fixed on time, the debt keeps on increasing along with the amount of interest. Threatening calls from creditors and stress become common once you get into debt. However, there are ways to do away with this problem. If you don’t know how to get out of credit card debt, read below.
Why get rid of credit card debt?
Many folks don’t bother resolving their debts. However, a majority of them end up losing a lot in the process. First of all, your credit score falls drastically due to unpaid debts. If you seek a loan, your application will be turned down due to huge debts to your name.
Secondly, you’ll be threatened by creditors to pay off your dues. This can be really pressing and can take a heavy toll on your health. You may age faster and feel stressed all the time. Also, your financial life will start crumbling over time. For these reasons, it’s better to make attempts to repay your dues.
How to pay off your credit card debt?
When it boils down to repaying your dues, you have two options – pay the dues on your own or hire a debt settlement attorney. First of all, let’s check how you can come off of your debt in a do it yourself manner. To start with, write down your monthly income and expenses.
Look for expenses such as spa visits and unnecessary purchases; cut those expenses. Also, make an attempt to increase your monthly income by way of overtime or a part-time job/business. Pay attention to your purchase patterns. For example, if you buy grocery items on a daily basis, make a change in this habit. Buy your groceries and other stuff in bulk once a week. This will cut down your purchase bills and save some money.
Now your monthly income will look better and your expenses will look smaller. List your credit card debts in such a way that the debt with a higher rate of interest is on the top. Use the money you save each month to pay off a part of this debt. Repeat the process again and again until all of your dues are completely paid off.
If you think that you can’t repay your debts on your own, hire a debt settlement attorney. The settlement attorney will work out a plan to clear your dues. He’ll negotiate with your credit card issuers and try to consolidate all of your debts into a single debt.
Also, he’ll work in the direction of waiving outstanding interest on your debt. Additionally, he’ll ensure that you get a longer time to clear your dues with little or no interest on the consolidated loan. Above all, your attorney will monitor your lifestyle and help to make positive changes for bettering your financial status. Over time, you’ll be able to clear your debt on credit cards.