How Do I Get Rid of My Credit Card Debt?
Did you know that the average American household owes $15,956 in credit card debt? If these households only pay their minimum payments every month, each will end up paying $11,000 in interest charges. There are many different reasons why people rack up so much debt. From unexpected purchases to losing a job, credit card debt can quickly escalate if you are not careful. This is why it is important to make an action plan that can help you reduce your credit card debt. In this blog, we give you a few tips that can help you eliminate your credit card debt.
Focus on One Card
Many people carry balances on multiple credit cards, but if you want to start removing your debt, focus on paying off the card with the lowest balance first. If you are worried about interest charges, pay off the card with the highest interest rate first.
Ask for a Lower Interest Rate
If you have a credit score of 730 or higher, or you have been a long-time customer, you can call the credit card company and request a lower interest rate. Even getting a small percentage taken off can end up saving you hundreds of dollars each year.
Transfer the Balance
In some cases, it is better to move a balance from a high-interest card to a card with a lower interest rate. However, you should only do this if you are fully committed to paying off the debt within the period of the introductory low-interest-rate. If you don’t pay off the debt during this time or miss payments, your interest rate can substantially increase.
Speak to a Debt Collection Attorney
Are you being harassed by debt collectors? Is your credit card company suing you for past-due debt? If so, you should immediately consult with our attorneys to learn how to protect your rights and interests. We can review your case and build a strong legal strategy for you. Let us get started today.
Call (312) 313-1613, or contact our Chicago consumer attorneys to schedule a free evaluation with our legal team.