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How to get out of credit card debt

How to get out of credit card debt
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Getting into credit card debt is as easy as keying in your PIN number or subscribing to one-click ordering. Getting out can be much more of a struggle. If you are looking at mounting credit card debts and need some help to extricate yourself from this nightmare then read our guide on how to get out of credit card debt. It will take time, but in many cases it is perfectly possible to rid yourself of your credit card burden and lead a debt-free life again.

Be Honest

Acknowledging that you have a credit card debt problem is the first step to resolving it. And it’s not enough to shrug and say ‘Yeah, I owe a few quid’. If you’re going to get out of the mess, you need to know just how deep you’re in. Add up your debts until you arrive at an honest figure.

Cut your Outgoings

Once you have a grip on where your debts are and how much you owe, you can start to address the issue. Cutting interest payments is the first step to beating down the amount you owe, and consolidating all debts onto one 0% balance transfer card is a great place to start.

Many card companies offer up to 24 months interest free credit on balance transfers. Take advantage of this, and any small amount you can pay off each month will actually reduce your real debt, instead of simply keep interest payments at bay. Try to pay off as much as you can each month.

Be sure to avoid using your card for new purchases to which interest will be applied, check that the card provider does not charge for balance transfers, and be ready to move providers at the end of the interest free period onto another card offering the same deal.

How to get out of credit card debt

Deal with costly debts first

This does not necessarily mean the biggest amounts. It’s about targeting the debts that have the most interest applied. If you are unable to consolidate your debts onto an interest free platform, then it is crucial to target the high-cost debts early on in your battle-plan. The longer you leave these debts live, the more you will end up paying. Pick them off one by one, maintaining minimum payments on all your others if you can to avoid further penalties.

Consider a Personal Loan

If you can illustrate to a lender that you are in a position to regularly meet loan repayments, then you could secure a lower overall interest rate by moving all your debts onto a personal loan platform. The biggest benefit of this is that it can spread your debt repayments over a prolonged and defined period of time, with a fixed monthly outgoing that is hopefully within your means.

Although it won’t reduce your debts, it can help to know that you are by no means alone in your credit card debt conundrum. Many thousands of individuals across the UK and beyond are experiencing similar difficulties. Always remember that you can ask for help and advice on debt management from Citizens Advice. Sharing your burden can help relieve much of the associated pressure and stress.

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About Cally Worden

About Cally Worden

Seasoned freelance writer Cally Worden lives with her family and dog in a quiet corner of rural France. A love of the outdoors, and a fascination with her children's ability to view life with fresh eyes provide the inspiration for much of her work. Cally writes regularly for various websites and UK print publications on subjects as diverse as parenting, travel, lifestyle, and business, and anything that makes her smile.

Website: Cally Worden

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