There are, however, ways that people can get a handle on their credit card debt. A recent story from U.S. News & World Report provided a number of tips for consumers who were looking for help with debt management.
Loren Bendele, CEO of a savings-related website, told the news organization that consumers should start by reducing debt on the credit cards that have the highest rates of interest. He also said that consumers may consider getting their credit card company on the phone to see if they can get a lower interest rate.
“Tell them you want to reduce your interest rate or else you will move to another credit card company,” Bendele said. “Start aggressive. Don’t cancel the card just yet, but see what they can do.”
Another strategy came care of Steven Katz, director of consumer brands at TransUnion. If consumers can’t pay off their credit card debt bill every month, they should at least attempt to pay off the minimum required by their lender.
Katz also told U.S. News that people need to pay their credit card debt bills on time or they’ll be hit with late fees. Paying late will also go on a person’s credit report, which will affect their credit score.
In order to ensure people pay on time every year, Katz recommended consumers set up an automatic payment plan for their cards. This will eliminate the need for consumers to keep track of when their card bills are due.
However, with fees for debit cards also seeing increases, consumers who engage in automatic bill payments should make sure their checking account has enough funds to cover costs. Otherwise, they may end up paying for overdrafts on their bank account.
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