You are viewing the printer-friendly version of Break the Bad Credit CycleBreak the Bad Credit CycleFor many people, credit card debt can seem insurmountable. But don't despair; there are some strategies to help ease the burden.Before you start cutting your debt, you need to assess your situation. Itemize all your financial obligations to understand what's going on. Once you do that, you're on your way. You have a bargaining chip with your creditors. They want their money back, and they may be more flexible than you think. Call them before they start sending late payment notices. Explain to them what you can afford and see if you can negotiate a modified payment plan. Sometimes if you explain that you have a temporary situation, they may be willing to work with you. Perhaps they will waive their annual fees. Be careful about where you get advice about your credit situation. The Better Business Bureau or consumer protection agency could give you information about resources. Keep paying your minimum payments on all your credit cards and focus on getting rid of one creditor at a time. Start with the card that's charging you the highest rates. Knuckle down and pay off your cards and don't spend unnecessarily. You could transfer higher interest rate credit card debt to more affordable cards. Sometimes the introductory zero percent rate on credit cards can save you a lot of money. Just remember those introductory rates usually only last about 6 months, so watch for the expiration dates. aa |