It is important that you learn how to take action on credit card debt before it is too late.
It is incredibly important that you sort your debt out as soon as possible before you find yourself in financial trouble or having legal action taken against you.
It is very easy to take out loans, get credit cards or open store accounts in today’s fast paced, consumer driven world. The media and advertising pushes people to buy, buy, buy without thinking about the consequences.
A huge amount of people find themselves overwhelmed by debt regularly and there are many dire consequences for getting in over your head and you should do everything in your power to avoid them.
The consequences of getting in over your head with debt
These are some of the terrible consequences that could befall you if you find that you cannot make your loan or credit card repayments:
- You could lose your house, vehicle and other assets to repossession
- You could be blacklisted
- You could find yourself forced to sequester your assets
- Your standard of living could drop as you would have to push all of your excess cash into repaying your debts
- Your credit record would be tarnished
If you have begun to realise that your spending on your credit card has resulted in debt that may cause you financial trouble, you should definitely sort it out as soon as possible before you end with one of the above consequences.
How to take action on credit card debt before it is too late
If your debt on your credit card is very high and has been for some time, you will undoubtedly be paying your interest off as well. This could mean high monthly payments that compound quickly, resulting in a debt that you can’t afford to pay.
The following steps will help you to sort out your credit card debt before it is too late.
2. Work out how much money you have left over after paying your expenses. Is it enough to cover some excess spending money as well as your debt repayments?
3. If not you may have to consider cutting down on your expenses to afford your loan repayments. The following things may be areas that you could cut down on:
- Food: buy cheaper brands, eat out less
- Rent: move to a place that has a lower rent
- Luxury items: stop eating out, buying take aways and spending on clothes and other unnecessary items
4. Make sure you use that excess money to pay off as much of your credit card debt as possible.
5. It goes without saying that you should STOP all spending on your credit card immediately.
6. If you can free up a large amount of money to put into your credit card debt it will help take a chunk out of your debt and will lower your interest repayments.
Do this in one or more the following ways:
- Put some of your savings into your credit card account
- Sell something that you no longer need to bring in some more cash to go into your credit card debt
- Find another way to bring in income (you can do this by making something to sell at fairs or markets, or offer a service on the side of your main job)
If you are still having trouble managing your credit card debt, you should contact a debt counsellor and get help as soon as possible. A debt counsellor will help you to manage your finances and avoid all the consequences that could befall you.