Credit Card Debt Getting You Down and Out

It's difficult to imagine life without credit cards. The concept began when stores started offering credit to their farming customers to carry them through to harvest time. Diner's Club expanded the concept for travelers and member restaurants. Now nearly everyone has at least one credit card tucked away in their wallets. For some, what started as a convenience, has turned into a nightmare. Credit card balances carry high interest rates, sometimes as much 28 percent or even higher. What starts out as a low interest card, say at 8 percent, dramatically increases if even one payment is late.

Some cards offer a six month's no or low interest rate and then after the initial period charge you with high rates. Good financial management says to pay off the balance every month so the interest charge is as small as possible. That's not always possible. If you've been hit with unexpected medical bills, car repairs or other emergencies, that balance may start to accumulate. If you're struggling to make even the minimum payments it's time to seek credit card debt help.

There are several methods to reduce your credit card debt. Some experts recommend paying off the card with the smallest balance first, while making minimum payments on the other accounts. This gives you a sense of accomplishment. When that first account is paid off the amount you were paying to it is rolled into the payment for the second smallest balance credit card account. And so forth.

Another alternative to pay off credit card debt is paying off the account with the highest interest rate first. When that's paid off focus on the next highest interest account. Keep up this method until the accounts have all been paid.

While these two methods sound reasonable, the challenge for most people is they don't have enough income. If they did they probably wouldn't have run up such high balances in the first place. When it's a struggle to just pay the mortgage, utilities and put food on the table, paying off credit cards isn't a high priority. If that sounds like you, there are other alternatives such as credit card negotiation and settlement, credit counseling, and debt consolidation loans.

Credit card negotiation and settlement means working with your creditors to agree to an amount that they will accept as payment in full. Once you've made that one-time payment the account is paid off. This negotiation process can be an unnerving prospect for individuals. When you call the credit card collection department, the representative is motivated to do only one thing and that's to get you to make a payment right now, not to negotiate. Working with a company, such as www.payingpaul.com that has experience in negotiating relieves you of that onerous task. If you're over your head in debt, it's time to take action now. The debt won't miraculously disappear.