Credit Card Debt Reduction

Reducing your credit card debt can be an overwhelming task. It often seems the more debts you accumulate, the more credit card applications you receive in the mail. Credit card debt reduction is possible; it requires determination, unshakeable willpower, rigid discipline, and a strong sense of commitment.

Interest Rates

The initial step to take toward reducing your credit card debt is to lower your interest rates. It can be as easy as placing a call to your financial institution and asking for it. Find a credit offer with a lower interest rate than yours, and inform your customer service representative that you are considering a switch due to the other company's low rate of interest. This usually prompts them to accommodate you in order to keep your business. Most banks have interest rates that range between 5.9% (teaser rates) and 19.9%. When negotiating interest rates, it is best to address the retention department of the institution as they are authorized to bestow certain deals to clients that some customer service reps cannot offer. In most cases, institutions prefer to lower their rates rather than contribute to the bottom line of a competitor. You have a better chance of getting what you want if your record shows that your minimum payments were always made on time. When considering new credit card offers, beware that the advertised interest rate is a lasting one and not one offered for a limited time only. The internet is a great resource for those in need of assistance in their credit card debt reduction. Not only does it provide numerous listings for agencies that can answer your interest rate inquiries, but it also informs you of credit card companies with low interest rates. If you have multiple credit cards with varying interest rates, a larger payment should be made to the one with the highest interest rate, and minimum amounts paid to those with the lowest interest rates until the high interest rate card is paid off. Interest payments add up quickly on large amounts.

Balance Transfer

If calling and asking for reduced interest rates did not bring satisfactory results, then playing the credit card game is the next step. If you have multiple credit cards, all with high interest rates, consider shopping around for a card that offers 0% interest on balance transfers and a lower introductory interest rate. This could save you a significant amount of money in paid interest. Taking advantage of such introductory offers by transferring your credit card balance to one with a lower or no interest rate will help you in achieving your goal to decreasing the amount of your monthly obligations.

Tips for Credit Card Debt Reduction

The most effective way to reduce expenditures is to change your spending habits - a task easier said than done. One way to reduce your credit card debt is to simply tuck your card away at home - do not carry it in your wallet or purse. Shopping without it eliminates the option of using it. Another effective way to curb spending is to set up a budget. By keeping a record of your expenditures, you will be able to better assess where you can cut back. Think twice about buying items that you cannot pay for in full at the end of the month. Some financial institutions will from time to time automatically raise your credit limit, a tactic that encourages you to spend. If your limit is increased, simply call your bank and let them know that you are not interested in a higher limit. Cut up all your store credit cards; their interest rates are usually high.

Warning Signs

Debt is very easy to accumulate; in fact, spending money can be an addiction for some. If you find yourself maxing out one or more of your credit cards, frequently lying about spending, and borrowing money from family and friends to cover your debt, it is time to seek help. People with debt issues often stop allocating money into their savings in order to pay off their credit card debt, thereby depleting funds for possible emergencies, education, vacations, and retirement. By adopting disciplinary measures with regard to spending, and adhering to a carefully planned budget, it is possible to achieve credit card debt reduction and perhaps even eliminate your debts completely.

Mary Talbot is the content manager for debtguides.org Debt Consolidation Guides. She offers debt management solutions to help you get out of debt and stay that way.