Tips to Manage Credit Card Debt Unmanageable Situation and Debt Consolidation

When some one is in debts up to eyeballs, it is time to pay attention to personal finances and how they are shaping. In such a situation, only way left is i) to take stock of the situation immediately and ii) take very fast action to prevent the situation from becoming bad to worst like police or court. Very first thing one can do is contact all the creditors one by one and explain them ground reality to find a way out like requesting them lowering the interest rate and waiving the penalties while offering them easy repayment as bait money. Negotiation is the best way to prevent things getting bad to worse. By negotiation you can definitely find some way to getting relief in the situation and I am saying this from my own personal experience.

The main culprit that acts as a catalyst is lack of education regarding interest rates, penalties etc. that credit card and money lending companies levy in case of default. These clauses are always available in their terms and conditions you accept but some times the print is some small that you cannot read. You can take a readable print and understand everything before signing acceptance of terms. Since all the information is easily available on the Internet, you can make a deep research about the credit cards, companies and compare their terms and conditions. In most of the cases it is found that lack of education leads to bad decisions.

Here are few tips that you can use to improve your CREDIT CARD DEBT situation:

The foremost important thing is make a household budget immediately. Contemplate on the household expenditure you feel can be reduced even if it is small bits. The small savings so made can be diverted into other most pressing areas. This way you can inculcate habit of keeping some funds for emergency for future.

Making minimum payment for consistently long period is not a wise thing. His is what the credit card companies want from you. You go on making minimum payments and interest payments and they are happy. But where will you reach? The credit card debt will never liquidate. You need to make some plans to increase payment amount by cutting or saving expenditure from other expenditure heads like entertainments, gas, outings and give preference to credit card bills. This is a good way that will not lead to unnecessary burden and can be implemented easily with little wisdom. Transfer of credit card balance from a higher interest rate to a lower interest rate is good and provides some relief but efforts need to be made to liquidate the debt otherwise in few short months, the same earlier situation can arise

While you are in debts, you can consider doing some part-time job, starting some home based business or work on holidays which can provide some additional income and the same can be straight paid to lenders or credit card companies.

You can engage some reputed credit card debt consolidation agency and take their counseling. They are the best people to consult if you feel that the situation has gone out of control. It is just like buying peace of mind by paying some more on their services for getting relief from debt collectors and their frightening calls.

Make it a habit to reading the credit card statements between the lines. If you find any discrepancy or inflated interest for a particular month, the same needs to be brought to their notice immediately to reverse the charge.