Student Credit Card Debt Relief Help
Are You In Need Of Some Debt Relief Help
If you avoid thinking about your debt because it’s overwhelming, or wonder, "Can I really escape my debt," then you’ve come to the right place. Here you’ll find a variety of debt solutions you can apply to your life and answers to your most important questions.
Problem: Credit card debt
Solution: Reduce expenses and consolidate debt
Part 1: Reduce expenses
For most people with credit card debt, overspending is the root cause of the problem, so you need to take a two-pronged approach. The first step is to reduce your spending. If you’re not sure where you overspend, write down everything you spend for one month. Be specific, for example,
• Shoes, $54.65, Macy’s, 2/3
• Food, $16.50, grocery store, 2/4
• Cleaning supplies, $25.50, grocery store, 2/4
• Candy bar, $.75, vending machine, 2/5
At the end of the month, total each category and then see where you can cut. Obviously, you can’t scrimp on the rent, but you could make an effort to reduce your electricity bill by turning off the lights when you’re not in the room and unplugging unused electronics. You can trim your food bill by using coupons and not buying convenience snacks or sizes.
Part 2: Consolidate debt
Reducing your expenses will give you more money to pay down your debt, but you’ll only make true progress if you consolidate your debts to reduce your interest rates. It’s hard to see progress when your debt is spread across five credit cards at 20%.
If you own a home, consider a home equity loan to consolidate your debt at a much more affordable rate – preferably below 9%. Not only will your debt payments cover more principal, but you may also be able to deduct the interest from your taxes. Use the savings to pay down more debt.
If you don’t own a home, consider a credit card balance transfer to a 0% card. Look for one with no transfer fees and aim to pay off the debt before the offer expires. If you don’t succeed, transfer it again. You could also opt for a personal loan if you don’t qualify for a balance transfer.