Bankruptcy is a scary prospect for many families. One of the major causes of bankruptcy is debt accumulated because of extensive use and mismanagement of credit cards. When facing thousands of dollars of debt, families need somewhere to look to offer hope, and while television would have you believe that you need to hire the services of a credit counseling company, that is just one of many things you can do to help relieve credit card debt.
Simple Things You Can Do
For credit card debt relief, the first things you should try are very simple and easy to do yourself. Firstly, set a budget for yourself, and track how much you spend versus how much you get in income each month. Doing so will allow you to compare your spending habits against how much you're actually making. Many people often purchase outside of their capabilities. That's not to say that everyone who buys a car should be able to afford it right off the bat, but some people might eat out twenty times a month when they can only afford ten meals at restaurants, for example.
Set realistic budgets for yourself, and be flexible. If you notice that you have an abundance of cash or are still increasing your debt, be willing to change your budget to match your needs to relieve credit card debt. If you're in need of a third party to help formulate a plan, seek out a credit counseling service to help you get a plan towards relieving credit card debt. They'll help you along the process, helping you to set your own budgets and getting you a loan if necessary.
Credit Consolidation
However, there's more that you can do to relieve credit card debt. To speed your journey along, start thinking about credit consolidation. Pay off one card (either the lowest balance or highest interest card) first so that you have more money to put towards the others, thereby cutting into the total interest that you'll pay over time.
Another course of action that you can take is to take out a loan to pay off the balance. A mortgage or home equity loan can give you a greatly reduced interest rate, and you'll be able to pay off the balance much more quickly. Suddenly $60,000 and 10 years becomes $25,000 and 4 years with a loan, and you'll relieve credit card debt that much more quickly.
Debt doesn't have to force you into bankruptcy. Using some of the simple suggestions found in this article can help you to get rid of your debt before it becomes that serious.
