What To Do if You Have Credit Card Debt
Credit card debt is something that many people have, but it can also be an overwhelming drain on your finances. If you’re struggling with debt, don’t let your balances continue to grow. Start by talking to your credit union about whether paying off high-interest cards with a loan with a lower interest rate is a good option for you. These tips will also help you manage your credit card debt and get out of from under growing interest charges.
Know Where You Stand
You can’t make a plan for paying off your credit card debt if you don’t know exactly where you stand. If you’ve been avoiding checking your accounts or opening your bills, know is the time to look at all of your current balances and add them up so you know exactly how much debt you have. You should also know the exact balance for each specific card and the interest rate on each account.
Pay Off the Highest Interest Rate First
The card with the highest interest rate is the card that is costing you the most money. Shrug off that debt by paying as much money as you can afford on that account first, while paying the minimum on your other cards. Wiping out the highest interest rate debt quickly can save you hundreds of dollars as you make payments. Repeat the process with you other cards.
Request a Lower Interest Rate
In some cases, creditors are happy to reduce your interest rate by a point or two if you simply ask. You have a better chance of getting a reduction if you have a history of paying on time and if you have been a long-term customer. If your creditor won’t give you a lower rate, consider transferring your balance to a lower-interest card or taking out a personal loan with a lower rate to pay down your debts.
GCS Credit Union is committed to helping our members achieve their financial goals, whether they need to get out of credit card debt, get a home mortgage, or simply manage their money more efficiently. To find out how to join our credit union in O’Fallon, call (618) 797-7993.