There are a large number of people who are deep in credit card debt. With interest rates hovering in the 20% range it is virtually impossible for an individual to get out of this financial quicksand. There are some proactive steps you can take in order to reduce the negative impact these debts are going to have on you.
Stop Using Your Credit Cards Now
One of the best things you can do is stop using your credit cards and going on a strictly cash budget. The premise behind this approach is you cannot spend what you don’t have so it forces you to be cognizant of every dollar you spend. Another benefit is you are not adding any new debt to the total you have outstanding but there is still interest being added to the debt with each passing day!
Contact Your Creditors and Ask Them for a Better Deal
If you are proactive and contact the credit card provider before your account become delinquent you may be able to get a reduction in the total amount of interest owed. The creditors know that default rates are on the rise so instead of getting nothing the creditor is usually willing to offer some relief but it is you that needs to take the first step.
Getting a Consolidation Loan
If you have equity in your home you might consider applying for a consolidation loan. By leveraging some of the equity in your home you can pay off the high interest credit cards and consolidate the payment. This step may not be viable for everyone but it can certainly give you some financial breathing room so it should be considered.
The best advice is to avoid credit card debt at all cost. By staying out of debt you never have to deal with the stress it causes.