Residents of Livonia and other parts of Michigan may want to learn more about a solid approach to dealing with credit card debt. Taking an honest look at your debt may be the first step to trying one or more of these time-tested strategies for paying off debt.
Define your strategy for repayment
You should try to pay more than the minimum monthly payment, which is 2% to 3% of the total amount. Make sure your payments are on time because banks make more money the longer it takes you to repay.
One common idea is the snowball method: Focus on the smallest credit card balance and pay it off. You’ll feel good as you see an account paid off. Roll that payment into the next account. You’ll gradually be making bigger payments, and you will soon pay off the debt.
Another plan is the debt avalanche where you pay off the largest account first. You may be able to take advantage of automated payments if you are doing the snowball or avalanche method.
Consolidate your debts
With good credit, you may be able to consolidate your debt into one payment. Zero percent balance transfer credit cards and personal loans may help here.
Work with creditors
They may offer a hardship program or be willing to work with you. A longtime customer with a good track record for paying on time will have an advantage. You may avoid fees and get a better interest rate through this strategy.
If the total amount you owe is greater than what you can pay each month, there are several steps you can take. It may be time to take serious steps with credit card debt. These options include the following:
• Debt management plans
• Debt settlement
There are many different options when it comes to credit card debt. It’s important to evaluate your available options and take action.