America is in the midst of a Credit Card, Medical & Student Loan Debt crisis. Regardless of how good the economy seems there are major signs of another recession around the corner. Most of us don’t have time to think about the “big picture”, we are just trying to make it through the end of the month. And if you are one of the millions of Americans struggling with debt, it may feel like there’s no way out. But here is the good news: There is a way out. It requires a little time on your part (just a little), and programs like these below.
Reduce The Chance Of More Debt
Choose one or two of your credit cards with the lowest interest rates and hide the rest. If you leave the other credit cards at home in a safe place then you won’t be tempted to use them when you’re shopping.
Get Reduced Interest Rates
If you have any credit cards with interest rates above 14% then contact the dealers and tell them that you are having difficulty making payments. Most credit card companies will work with you to reduce the rate or to figure out an extended payment plan because they don’t want to lose your business
Pay More Than Your Minimum
Look at your credit card statement. If you pay the minimum balance on your credit card, it takes you much longer to pay off your bill. If you pay more than the minimum, you’ll pay less in interest overall. Your card company is required to chart this out for you on your statement, so you can see how it applies to your bill.
Pay a bit extra each month. Every dollar over the minimum payment goes toward your balance—and the smaller your balance, the less you have to pay in interest.
Cut Your Expenses – Put Savings Toward Your Debt
For a while, you need to cut out all spending that isn’t essential. Learn to cook a few simple, inexpensive meals at home. Start getting movies from Redbox instead of going to the theater. Play games at home instead of going out. Let cable or satellite TV go and get Netflix and Hulu instead. Find any and every way you can to avoid spending money. Then use the money you don’t need for rent, car payment, utilities, and other essentials to pay your debt. Every dollar you pay gets you one step closer to being debt free! Some people even make a game out of it. Challenge yourself, your roommate, or your spouse to see who can cut the most expenses.