Credit card debt is all too common nowadays. People are getting in credit card debt because of irresponsible spending, not understanding their credit card terms or not tracking their payments and interest rates.
If you miss your payments, you can cause your interest rates to go high. You can also get a fine that will make your debt to escalate.
If you want to get out of your credit card debt, you need to make sustainable changes in your financial life. Set up a budget, prioritize your spending, improve your rates etc.
You can also consider debt relief options if overwhelmed with debts and your creditor is threatening to sue you. The available debt relief options in Oklahoma include debt consolidation, debt management programs, consumer credit counselling, and bankruptcy, just to name a few.
Create a Budget
It takes a good budget, persistence and self-discipline to get rid of a debt. Set up a budget detailing what you spend. A budget will show areas that you are overspending. This is money that can used to pay your credit card debt faster.
To completely get rid of your credit card debt, you have to stop adding to it. Avoid overspending with your card and if possible, stop making new purchases. Your ultimate goal is to get rid of your debt, not to add to it.
Create a list of everything you owe plus your monthly bills. Accessing your financial situation will help you decide on the best way to use to tackle your credit card debt.
Have realistic goals for paying your debts and don’t forget to monitor your progress in order to feel motivated in getting rid of it.
Negotiate for a lower Credit Card Debt in Oklahoma
Credit cards are known to carry high interest rates. If you are overwhelmed by credit card debt, it is important to call your credit card company and ask for a lower rate.
Lower rate means lower monthly payments and fees. However, there are certain things to do before engaging in a negotiation. Know your current balance and the interest rate that you pay so you can be in a better position to explain why you need a lower rate.
Most creditors will want to hang on their best customers. Do you have a good credit score? If your answer is no, you need to improve it. You can improve by making your monthly payments on time.
This will demonstrate to your credit company that you are a diligent customer and they will be interested in negotiating with you.
Make 2 minimum Payments per Month
Making 2 minimum payments per month can help to get rid of your debt. Your balance will be reduced considerably and can attract low interest rates. Making 2 payments per month can also boost your credit score.
Debt Relief Options in Oklahoma
If you have more debt than you can handle, it is wise to consider debt relief options.
They are ideal for Oklahoma residents who have exhausted all other alternatives and want to avoid bankruptcy.
Debt Consolidation in Oklahoma
Debt consolidation is the combination of several loans such as car loan, credit card debt and student loan into 1 loan. This 1 new loan usually comes with more favorable payoff terms such as low interest rate and monthly payments.
The loans are usually offered by banks, consolidation companies or other financial institutions. Debt consolidation would be ideal for people who:
-Are unable to negotiate for lower interest rates
-Have multiple debts
-Have debts with high monthly payments and interest rates
-Owe $10,000 and more
-are having difficulty in making payments
There are 2 types of consolidation loans. Secured and unsecured loans. Secured consolidation loans are backed up by assets while unsecured loans are not backed by any asset.
Consumer Credit Counseling
Working with a consumer credit counselling agency provides a fix to your financial burden. They will offer either free credit counseling sessions or charge a small fee.
They will provide money management advices, offer resources, help you prepare a budget and even give free educational workshops. A counselling session can last for 1 to 4 hours with follow up sessions.
There are some credit counseling agencies that recommend a debt management plan where they will ask you to deposit with them then pay off your creditors.
Debt Management Programs
Debt management programs are other effective debt relief options. Their goals are to eliminate debt by lowering interest rate and monthly payments. With these programs, a debt settlement company negotiate with creditors on your behalf to lower your rate.
Pros of debt management Programs
-They are organized and will give you the ability to handle your finances competently.
-No more calls from your creditor card company hence you will have peace of mind.
-You will make 1 monthly payment with them and they will handle the rest