Top Tips For Removing Your Credit Card Debt

This article has been written by Todd McCullough, an independent blogger and finance researcher. He represents the financial loan company http://wonga.ca by producing guest posts full of useful money saving and organisation information for various websites.

Credit card debt is a crippling force if left to escalate.

If you struggle with credit card debt then you will know that the repayments become harder and harder the deeper you get into the debt quagmire. Your repayments increase and continual penalty feeds for being over your limit can cripple any long term chance of recovery you have. Do not be tempted by quick fix solutions to your monthly problems such as additional loans to cover your normal expenses. Do not open up more debt even if you feel that it solves your immediate issues. You must strive for solutions that aren’t still in someone else’s pocket.

Reduce the deficit ASAP.

It is imperative that you reduce you outstanding balance as soon as is physically possible – this will reduce your level of monthly repayments and start you back on the road to financial control. Sell things you no longer use on Ebay or gumtree. Move your long term savings arrangements around in such a way that you can freely access them without suffering a penalty fee. You can even try asking for help from your immediate family if your debt has become critical. Do what you can to reduce your debt to the bank and this will ease the financial haemorrhage. If you have the money in your account do not settle for simply paying off the minimum required amount to not be charged a late payment penalty fee. Look to pay off the amount in full while you have the resources available.

Create a buffer area in your credit card account to reduce risk.

While you want the majority of your savings to be doing work for you in high interest savings accounts or in some kind of financial investment, it is worthwhile preserving a small contingency amount residing permanently in your credit card account. This cash sum can cover you in the case of emergencies when you are forced to use your credit card as a payment method for whatever reason. As you have the funds already in there you can make your payment without worry as you know your account will not be going beyond your current funds. Of course you need to remember to top up this buffer amount at intervals to ensure you don’t accidentally run into withdrawing cash you do not own. Awareness of your own earnings and savings is paramount at all times.

Seek professional advice.

Although the last thing you really want to be doing is spending more money, you should seriously consider the investment of obtaining a professional to explain your specific financial situation to. A professional will be able to give you a detailed strategy that will help consolidate your debts into a reduce payment plan and will help you settle your debt in the most cost effective way. The advantage of paying an individual for their freelance advice is that you have the peace of mind of knowing that they have your best financial interest at heart. The sad reality is that many other sources that claim to offer debt solutions are simply trying to obtain you as a customer that they too can make some money off.

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