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Keep the following tips in mind when dealing with credit card debt:
- Stop using your credit cards
- Pay high interest debt first
- Think about consolidating your credit card debt but note there may be fees associated with this process
- Pay more than the minimum
- Prioritize saving vs. repaying debt
- Set up a direct pay system for your account to avoid late charges
- Avoid secured debt when unsecured debt is an option
- Consider using a not-for-profit credit counseling service for assistance in personal finance issues (i.e., budgeting, credit and debt resolution). Avoid services claiming to have a quick fix in the restoration of your credit. Bad marks on your credit file can only be eliminated if your credit is maintained at a good level for many years
- Contact your creditors directly to ask about special programs to pay down credit cards. See if options are available. Consider contacting a credit counseling service. Free or low-cost consumer counseling can be obtained through the National Foundation for Credit Counseling. Call 1-800-388-2227 or visit their website to find a member agency in your area
- Consider filing for personal bankruptcy, but only as a last resort. Bankruptcy is expensive and the effects remain on your credit report up to 10 years and may hinder your ability to obtain credit, a job, insurance and a place to live
- Consider closing out and cutting up credit cards on which the balance has been paid in full. Notify the credit card company in writing that you are closing the account and subsequently check your credit report to ensure the listing is accurate