Saturday, 3 Nov 2012
Debt reduction is a concern for many people. Here are eight steps you can take to get your debt under control.
- Don’t accumulate new debt! Cut up those credit cards or file them away in a drawer. Put them in a bowl of water in the freezer if you have to. The first step in eliminating debt is not adding to the existing balance.
- Get rid of the temptation and reduce the amount of junk mail you get. Opt out of new credit card offers by calling 1-888-5-OPTOUT.
- Ask your creditors to reduce your interest rates. If you always make your payments on time, your creditors may be willing to work with you and lower the interest rate on your debt.
- Always pay more than the minimum amount due. A $1000 balance at 0% APR will take over FIVE YEARS to pay off if you only pay the minimums.
- Use an automatic bill payment service in order to avoid incurring late fees.
- If you anticipate a tax refund, consider using the lump sum to reduce or eliminate your credit card debt.
- If you have a good credit score, consider consolidating your debt by taking advantage of balance transfer offers.
- DON’T trade unsecured debt for secured debt. Resist the urge to use a home equity loan to pay off your credit cards.
Right now, there are a number of credit cards that have great balance transfer offers. One of the best deals out there right is now is the Discover® More Card card.
- 0% intro APR on purchases and balance transfers for 14 months, then the variable standard purchase APR of 10.99% – 20.99%*
- Earn 5% Cashback Bonus on up to $1,500 in purchases at Department Stores and on ALL online shopping through December , as well as in categories that change throughout the year like gas, restaurants, and department stores up to the quarterly maximum. It’s free and easy to sign up.*
- Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com
- Discover is ranked #1 in customer loyalty–16 years in a row! (2012 Brand Keys Customer Loyalty Engagement Index report)
- 24/7 access to a U.S.-based Account Manager within 60 seconds
- $0 Fraud Liability. You’re never responsible for unauthorized charges on your Discover card account, plus mobile and email fraud alert options
- Great rewards with no annual fee, no rewards redemption fee, and no additional card fee