How to Get Out of Debt - Managing Your Credit Cards
As difficult as it can be to keep your finances under control with a single credit card, managing several cards at once can be an almost impossible task. Is your best bet to pay them all off at the same time? Is it a better idea to focus all your attention on a single card? Determining which cards to tackle first and which ones can stand to stick around a little longer is one of the most crucial aspects of paying down your credit card debt. Likewise, getting your credit card debt under control is one of the most important aspects of getting out of debt altogether.
When it comes to dealing with credit cards, the simple fact is that the fewer cards you have, the better off you will be. Several credit cards mean that your chance of finding yourself facing expensive late fees goes up substantially. You also run the risk of finding yourself paying for over the limit fees or annual fees that can cost anywhere from a few dollars a month up to $150 or even more. Aside from the financial benefits of eliminating credit card debt, there is also the huge reduction in stress and anxiety that comes from no longer going money to your credit card company.
There are a number of different tips out there when it comes to determining which credit card to pay off first. Most experts agreed that you should concentrate on the high interest cards since they will cost you the most money in the long run. Determining which card has the highest interest rate is as easy as looking at your monthly statements. Generally, department store credit cards are often the most expensive and the least forgiving when it comes to negotiating payment arrangements.
You should also keep in mind that you can contact your credit card company and ask for more favorable interest rates, payment schedules, and many will even wave late fees, annual fees, and over the limit fees if you ask them to. Once you find yourself with one or more credit cards with zero balance on them, resist the temptation to automatically close the account. Leaving your credit account open but unused will do wonders for your credit score, making it possible for you to qualify for better loans or even credit cards in the future. The truth is that if you find yourself with several credit cards, you will need to carefully monitor them.