Many people in Durham struggle to pay their credit card debts. Some of them are not sure how they can afford the minimum payments and continue to use them. If you rely on your credit cards to help pay your monthly living expenses, you could end up digging a financial hole for yourself. Though credit cards can help you pay for things when you are low on cash, you should not rely on them if you cannot afford to pay them off within a few months.
If your credit card debt is causing you to lose sleep at night, and you are having trouble paying it off, it might be time for you to change tactics and develop a better repayment strategy. Here are some ways to make your credit card bills more manageable.
Gather up your credit card statements
Knowing where you stand on your credit card bills is a crucial first step. Once you know how many credit cards you have to pay off and what their minimum repayment requirements are, you can devise a plan to pay them off that works for your situation.
Inventory your monthly expenses
Assess your monthly finances to determine how much money you have left over. Be sure to write down your necessary monthly expenses and the frivolous ones. A budget can help you to better manage your money and keep track of where every dime goes. It also makes it easier for you to see where you are wasting money that you could use toward your credit card debts.
Set up automatic payments
If you have a problem keeping up with timely payments, set up automatic payments for the minimum amount due on your accounts. The interest penalty for late payments can quickly cause your bills to spiral out of control and cost you much more money in the long run.
Make multiple payments
Many credit companies allow their customers to make multiple payments on their accounts. Take advantage of this option by putting any extra money you have toward your debts. Paying extra payments can help you whittle down your debts faster and help you avoid interest charges.
Work with your creditors
If you do not inform your creditors of any difficulties you are having in paying the bills, they will pursue collection tactics according to your account agreements. Contact your creditors to ask for lower payment options and to learn if there are financial hardship programs you can use to keep from becoming delinquent on your payments. The goal is for you to be proactive about your credit card debts and minimize the negative impact on your situation.
Depending on your circumstances, you might feel tempted to take out personal and consolidation loans to get your credit card debts under control. Carefully review the requirements to ensure you are not taking on more financial issues that can make your circumstance more difficult. Not all loan and debt consolidation programs are beneficial. You might find it wise to speak to a bankruptcy attorney for guidance.