Unpaid Credit Card DebtGet Out From Under It
Unpaid Credit Card DebtGet Out From Under It If you have unpaid credit card debt and you�re still using other credit cards, try to stop. While this isn�t always possible in today�s economy, if you can stop using credit you will be able to get out of debt faster. It�s important to do what you can to get out of debt because unpaid credit card debt can haunt you for years. Try to consolidate your credit card debt onto one lower interest card. If you have decent credit you may be able to get a good deal on a new card with a low interest rate for balance transfers. But be careful using this approach to try to lower your unpaid credit card debt. If you consolidate all your cards into one, then you now have one payment per month instead of several. This is automatically more simple for you. But if you mess up and are late with a payment on that new card, you could end up in a deeper hole. Most of these low rate cards have a clause in the contract that tells you what happens if you�re late. One late payment can send the interest rate up dramatically. It might not be as high as your highest interest rate but it could be close. And if you were paying less interest than that on some of the balances that you just transferred, you�ll be losing money this way. Worse, after a late payment you can�t just then transfer those balances to a different low rate card because that late mark is on your credit report. Any low rates will probably be out of your reach now. This is a good way to get stuck with bigger problems and even more unpaid credit card debt. So if you use this approach, be diligent. Make your payments early so there�s no chance of them being late. And pay much more than the minimum balance whenever you can. Paying the minimum balance is a great way to make sure your debt last for years, even decades. Also, consider taking your credit card with the lowest interest and best terms and keeping it handy in case of emergencies only. Then hide the rest from yourself. Whether you want to shred them and get rid of them or put them in a tub of water in the back of your freezer, stop using them. It�s a good idea to start saving money in an emergency fund so that you won�t have to rely on credit if problems arise. It�s all too easy to think that your cards that now have zero balances are free money. But if you start using them, you�ll regret it. Now you�ll have this large balance credit card to pay each month and small ones, too. This is a trap many people get into when they realize they can�t stop using credit cards. If you want to get out from under unpaid credit card debt, then you have to stop using credit and get that balance paid down.