Although the data is about 3-4 years ago, the current situation is very similar . What is certain is that it is not much better. And one of the debt items that has increased the most is that of credit cards.
Why have credit card debts gone up? The lack of liquid money has caused many families to have to throw away the plastic money to simply reach the end of the month. This coupled with the simplicity of access to money through a credit card, explains this increase.
If you are or belong to one of the many homes that struggle each month with your credit card debts, you have to know that you are not alone. Yes, I know that this seems typical of “evil of many, consolation of fools” but knowing that you are not the only insurance that helps you .
Credit card debts are a slippery slope and it is very easy to fall into them
Before you know it, perfectly reasonable purchases for you become imminent debts. It is an intimidating situation and you may think that there is no way out. This is a very common scenario but it doesn’t have to be that way. You can get out of this situation. I want this article to serve as a complete guide to get out of credit card debts. Above all I am going to focus on the steps you can take today.
According to the latest Family Financial Survey conducted by the Sprat Bank with 2013 data, these are the main debt data :
- An average household allocates 18% of its income to pay its debt.
- This amount increases to 46% of the rent, if we talk about low income.
- And 23% if the family’s reference person is under 35 years old.
- 13% of total households in Spain allocate more than 40% of their income to pay debts.
- The average debt is 131.7% of the average income.
- More than one in four households owes more than three times their annual income.
Get out of credit card debt step by step
Believe it or not, you can start changing your situation today. In fact, right now.
It is critical that you start taking steps to stop or stop the accumulation of debt immediately. Before things continue moving in the wrong direction.
The list you will see below consists of unique and decisive actions that you should consider.
Take a realistic look at your balances, interest rates and commissions
Many people have large numbers of letters or documents on their unopened credit cards.
If you don’t have a clear understanding of your situation, you can’t fix it. So open those letters. Write down the balances. Determine which of your credit cards has the highest interest rate and which is the lowest. Make sure you understand the status of your situation well .
If you can, transfer your balance
If you have several cards, one possibility that will partially relieve your situation is to transfer the balance of one card with a higher interest rate to another with a lower interest rate .
Of course, before doing so make sure you take into account the commission for balance transfer between cards, unless it is more expensive.
Keep in mind that balance transfers are not always free and will only be worth it if the benefits of transferring the balance to a card with lower interest rates compensate you for the cost of the commission.
Eliminate all unnecessary expenses
This part is never easy but you must do it. Unnecessary expenses include expenses as obvious as dinner away from home, party nights, clothes you don’t need and so on. You should also examine spending on lugo’s article, such as television and high-speed internet. You may believe that they are necessities but unless you need them to work, you do not need them to live.
Debt reunification is not for everyone but it is a possibility that you can explore. The reunification of credit card debt what it does is join all your debts of several cards into a single debt .
You’ve probably seen a few ads from companies and debt reunification entities. It is important that you choose a reputable company if you decide to make a debt reunification because many of these companies charge very high commissions and end up costing more money in the long term.
Debt reunification interests you if the final interest rates are lower (and the fees do not end up being higher) than in your current situation.
Talk to your credit card issuer and ask for a lower interest rate
This seems like a very simple task and it really is. Call your card issuer, be polite and reasonable, and request a lower interest rate. Many people do not know that it is an option that works … sometimes. If they say no, politely ask to speak with a supervisor. If they tell you again no, try again later.
It is important that you keep in mind that this option is the last resort , that you should only use it in the worst case. Filing for bankruptcy affects your credit and your assets and can have a strong impact on your present and future life. If you are considering this option, look for a reputable bankruptcy lawyer to do everything properly and have no surprises. And these are the steps you should take if you find yourself with debts on your credit card. I hope they help you and get out of this unpleasant situation.