• "The surest way to establish your credit is to work yourself into the position of not needing any."
  - Maurice Switzer
  
  "Credit is like a looking-glass, which when once sullied by a breath, may be wiped clear again; but if once cracked can never be repaired."
  - Walter Scott
  
  "No man's credit is as good as his money."
  - Ed Howe
  
  "Friendship, like credit, is highest when it is not used."
  - Elbert Hubbard
  
  

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  • December 2008
  • November 2008

So you have accumulated a huge credit card debt by not keeping a check on your shopping spree? In that case, you will definitely need to plan some smart moves that will help you in achieving credit card debt relief. Here are some smart tips for beginners which will help them to eliminate credit card debt::

•    Assess your damages
Before planning your next move, it is always better to assess the total amount which you need to pay off your debt. So sit down with pen and paper or open an excel sheet and make a list of all your loans and debts including credit card debts, home equity loans, mortgages, car loans, medical bills, personal loans and any other outstanding amount that you can think off. This will help you in coming up with the total figure of the accrued debt and will help in deciding your next step.
•    Negotiate with your Creditors on the Interest Rate
The next important step after creating the list is to check for the debt with highest interest rate. Usually credit card debts are at the highest interest rate. Any credit card debt which is incurring more than 15% of interest should be targeted first, as it is essential to eliminate credit card debt if you want to repay all your loans. You should then call up the customer service desk of the credit card company or the bank and try to negotiate the interest rate. Most of the banks are willing to oblige if you have a good credit history but unwillingness on their part can be countered by telling them about the offers you have received from other banks and agents. This should usually do the trick as nobody would like to loose their customer to their competitor especially during the time of downward economy.

•    Shift Bank Account
So you ran against a stone wall while negotiating your interest rate, don’t be disheartened and search online for banks or other credit card settlement firms that can help. But remember the theory of once bitten twice shy before transferring your balance to another bank or moving to another credit card. Check that the interest rates are lower and also if the credit card company is charging some fees. Once you are confident of a better deal make your move and transfer your balance into the new account. Besides this make concentrated efforts in paying of a single debt first which irks you the most.

So think and act wisely if you actually intend to eliminate all your debts.

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