An average person usually falls into the trap of having a bad financial status with credit cards because of unpaid monthly dues. And once you have fallen into the ploy, it is already hard to recuperate especially in the kind of economic status that we currently have. We end up paying the ever-increasing finance charges that make the bulk of our debt.
Our credit card, monthly payments can only go one way…and that is up unless we do something to address the ever-increasing debt balance. Every unpaid monthly balance would pile up in the form of finance charges that would yield to a higher interest rate being charged on our credit card accounts. And, if this cycle goes on and on, we will just wake up one day realizing that we can no longer pay all credit card dues and we’re stuck in a deep dark hole. The good news is, there are ways and means on how we can lower down our credit card payments, and here they are below.
The first thing we can do is make monthly payments that are significantly higher than the balance. If we can do this regularly for consecutive months, then, our credit card payments will definitely drop down.
Not only must we pay more than what is required from us; we should also pay on time to further cut the finance charges associated with late payments. Furthermore, we must control our urge to use our credit card for so long as there is still an outstanding balance that needs to be paid off.
Another equally wise alternative course of action if we are already caught with sky-scraping credit card payments is to tap the services of our credit card counseling organization. Apparently, major credit cards offer this kind of service to address the issues of delinquent payers. They participate in debt management programs that aim in lowering down the monthly payments and reducing the interest rates of clients enrolled in this program. It is to be noted though that our eligibility to participate in this program would depend on our relationship and standing with our creditors. The people behind the card counseling organization are ready to help people who demonstrate financial distress especially in dealing with the payments of their credit card balance.
Another good thing with the credit card counseling organization is the fact that credit counselors will provide a projection of what your monthly payment would be; consequently, they will help you come up with a workable budget that will make you pay off your monthly credit card balance and at the same time address all your daily expenditures. Furthermore, they will also tell you the amount of interest savings that you will be able to earn while on the program.
It is to be noted that the coverage of credit counseling organizations to lower down your interest rate will solely depend on the status of your account. Apparently, they prefer current accounts; however, they can still give a remedy to late payments through the wide range of re-aging benefits that they offer through the debt management program.
It is important to take action before our accounts get to be charged-off and referred to debt collection agencies because by then, it will already be too late because they don’t have programs that offer benefits just like the credit counseling organization and debt management program. You’ll just end u sinking even further in a black hole.