Big Credit Card Debt Can Kill Your Credit Score
In today's society, it might be easier to get a credit card than to organize your dresser drawers. Half of the time, the credit card applications arrive at your home and are practically filled out for you. All you have to do is ink down your first and last name and then you are the proud owner of a fresh new credit card.
Then you get the card, and it's easy to use. It's just as easy as your debit card, except it doesn't hit your bank account ... yet. It hits your credit card debt, which is a killer. It's very easy to keep spending and spending, and it's very easy to lose track of how much you have spent.
A huge credit card debt is staring right back at you. The basic plan from the credit card company is something ridiculous, like a thirty year payment plan and the payment just goes up more and more every month to no end. Your new lifestyle of spending recklessly has left you in a mess, yet there is a way out.
Fix your mistakes and mend the wounds that the credit card companies have caused. First thing first, you must call the company. The truth is; they want their money as bad as you want out of debt, so you know that they will work with you. Often times you can negotiate a more than affordable payment plan that will stay constant.
As soon as you get off the phone, cut up the card. Don't trash it, because you might need the number for confirmation on a report or something, but cut it up so you can't use it. Put it in a baggie and bury it in the closet, in your sock drawer, or somewhere else it is safe and you are not likely to pull it out and use it. Stopping the spending is critical.
As you make your payments on your credit card debt, you might still be hearing from other agents. Resist the urge to yell at them - they are people just like you trying to make a living, just their living is a lot more stress-inducing than yours. Instead, tell them that you are on the path to fixing your debt problem, starting with one of your large accounts.
Never give the details of the plan you made with the other companies to pay back the debt as most calls are now recorded for legal purposes. Make sure they know that you are not made of money and will need their complete cooperation if they really want to set up a payment plan. Keep your spending in reason though so the payments do not overwhelm you.
After all these arrangements, there might be another bill that you forgot about. If you cannot pay, don't lie. Apologize to them. Let them know that you have made arrangements with however many other places, and your income is fixed, but you will be happy to call them monthly to update them on your status. Stay in touch so they know your intentions, and you may find the collectors working on YOUR terms!
Then you get the card, and it's easy to use. It's just as easy as your debit card, except it doesn't hit your bank account ... yet. It hits your credit card debt, which is a killer. It's very easy to keep spending and spending, and it's very easy to lose track of how much you have spent.
A huge credit card debt is staring right back at you. The basic plan from the credit card company is something ridiculous, like a thirty year payment plan and the payment just goes up more and more every month to no end. Your new lifestyle of spending recklessly has left you in a mess, yet there is a way out.
Fix your mistakes and mend the wounds that the credit card companies have caused. First thing first, you must call the company. The truth is; they want their money as bad as you want out of debt, so you know that they will work with you. Often times you can negotiate a more than affordable payment plan that will stay constant.
As soon as you get off the phone, cut up the card. Don't trash it, because you might need the number for confirmation on a report or something, but cut it up so you can't use it. Put it in a baggie and bury it in the closet, in your sock drawer, or somewhere else it is safe and you are not likely to pull it out and use it. Stopping the spending is critical.
As you make your payments on your credit card debt, you might still be hearing from other agents. Resist the urge to yell at them - they are people just like you trying to make a living, just their living is a lot more stress-inducing than yours. Instead, tell them that you are on the path to fixing your debt problem, starting with one of your large accounts.
Never give the details of the plan you made with the other companies to pay back the debt as most calls are now recorded for legal purposes. Make sure they know that you are not made of money and will need their complete cooperation if they really want to set up a payment plan. Keep your spending in reason though so the payments do not overwhelm you.
After all these arrangements, there might be another bill that you forgot about. If you cannot pay, don't lie. Apologize to them. Let them know that you have made arrangements with however many other places, and your income is fixed, but you will be happy to call them monthly to update them on your status. Stay in touch so they know your intentions, and you may find the collectors working on YOUR terms!
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posted by Debt Consolidation Loan at
2:25 AM
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