FinanceDogma – Finance, loans, creditcard and mortgages

February 23, 2010

Take Control of your Credit Card Debt

Filed under: Credit Card — Tags: , — admin @ 1:52 pm

Question: Is it so easy to eliminate credit card debt?

Answer: No it is certainly not easy, but it is possible, with the right approach almost anything is.

This is your current position.  You started off with a certain credit card; found that buying things that were once out of your reach became quite easy.  So buying is what you did, and boy was it a good feeling. The purchase didn’t cost that much and the monthly repayments were easily dealt with.  Then there was that certain something else; okay you can afford it, the money is there.  So you got that buzz back, it only made a slight difference to the monthly payment, so who cares.  And on it goes, little by little your credit is run down, the interest charges go up and soon you are at your limit.  But you still crave that spending power.  So you take another and you swear you will use this one wisely.  It is only a short matter of time before you are in the same boat once more, except now you have two cards and a debt that is becoming increasingly difficult to control.

STOP!!!!!

You are heading down a road which is difficult to return from.  Look at what you are doing and realise that this is pure self destruction and no good can come of it.

Pretty soon the bills will go unpaid and the charges will ultimately build up.  Now there is little respite because you have damaged your credit history with the late payments.  There is no way out.  The sound of the phone ringing brings fear, and you dare not go and see what letters have just fallen through the post box.

There is a way to avoid this. First of all you will need discipline and self control, but you can get control back.  Contact everyone you owe money to, explain the situation you are currently in and make an offer that is realistic and which will get them off your back.  If they feel you are not in the position to offer more, they will accept.  They want to see their money coming in and bankrupt clients can’t do this.

Once these offers are in place, you must adhere to them; they won’t like perceiving that you have given them the run-a-round.  Having acted in good faith, you must do the same.

Now this is one for the long haul:  You will not see the problems disappear overnight.  You will find a modicum of control back in your life so build on that. Seek to eliminate all those debts so you can be proud of that achievement.

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