Credit Card Dilema
Personal credit card debt is at an all time high with most people owing, on the average, over $5,000. If you're one of these people, what is the best way to handle credit card debt? First, we have all seen those television commercials where companies promise to rid you of your credit card debt. All these companies do is contact your creditors on your behalf and negotiate with them and some don't pay as promptly as you might think. You can do this yourself without the expense of a credit repair company.
First, you need to sit down with all your credit cards and create a spreadsheet on the balances you owe including your interest rates. Remember every credit card may have more than one interest rate. You may have one for general purchases, another for cash advances, and yet another for late fees or courtesy checks. These are usually found on the back or bottom of your credit card bill. If you can't decipher or understand them, then call the credit card company and ask. Once you have a good idea of what you really owe, next you need to look at your total household income coming in and all your other expenses going out. Include your rent, utilities, groceries, vehicle payments, and any other monthly expense you have.
Finally, be honest with yourself on how much you can commit to pay on each card every month. If it's only $50 or $100 then write that down next to each card on your worksheet.
Image Credit: Credit Cards Wikimedia Commons