Business & Finance Credit

How to Stop Credit Card Debt

By Business & Finance Last updated Sunday, April/14/2024

1). Call your credit card companies and negotiate a lower rate of interest, which allows more of your payment to be applied to the principal balance instead of interest. This helps reduce your balance faster. If you cannot make a payment for one month, the interest that accrues is added to your balance, and your debt grows faster.
2). Make your payments on time. Any late payments will cause you to incur late charges. A late payment can increase your interest rate to the credit card default rate, which can be well over 25 percent.
3). Establish a budget that keeps you in control of your finances. This will ultimately stop credit card debt from accumulating further.
4). Stop the junk mail credit card offers from coming to your address. Sometimes people will fill out these offers as a habit, and before you know it, you have applied for two or three cards you don't need. If you have the cards, chances are you will use them.
5). You may want to shred your credit cards and throw them away, but don't close out the accounts because that can lower your credit score.

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