The holidays are just coming to a close and we’re all left with the happy memories of gift giving and get-togethers with our loved ones. However, it won’t be long before the mailbox will start to fill up with the credit card bills that you used to pay for all the good times you enjoyed. Holiday credit card debt can be a problem for many people if you don’t take action to stay on top of payments and make other changes to your spending habits. Check out a few ways you can deal with holiday credit card bills and ensure your credit score doesn’t take a hit.
Tips For Dealing With Holiday Credit Card Debt
Stop using credit cards for a few weeks. It’s easier to pay down an existing credit card balance if you’re not adding to it in the weeks after the holidays. Put the cards away and pay cash when shopping for groceries, gas, utilities and other necessities. You won’t be over-extending yourself when you’re only spending what’s in your pocket.
Make responsible cut backs in spending. There are likely quite a few areas where you can save money, funds which can then go towards paying your credit card bills. Instead of going out to eat for your lunch bread, pack your meal. Turn your weekly mani-pedi into a once a month occasion. Avoid the stores where your spending resolve is weakened.
Focus first on high interest credit card debt. If you have a few different types of credit, concentrate on paying off those accounts that bear a high interest rate; usually these will be your credit cards. Of course, you must stay current on your mortgage and car payments, but review your other accounts to compare interest rates.
Try to pay more than the minimum every month. You’re required to pay a certain minimum amount on your bills, but you benefit from applying more than that per month. The interest rate applies to your balance going forward, so try to reduce this amount by paying twice – or more – of you minimum payment.
Consolidate high interest credit card debt. You may be able to consolidate your credit card balances into a lower interest personal loan. The process involves talking to lenders about opening a line of credit and negotiating an interest rate; then, you use the loan funds to pay off higher interest credit accounts. You don’t eliminate the amount due, but you’re paying less interest and you’re only paying one creditor every month.
Attempt to settle or negotiate debts. Credit card companies are often willing to negotiate with you to pay down your debt. Many times, you can settle your credit card debit for 40 cents on the dollar – or even less. It’s likely that you’ll need to apply a lump sum payment, so keep this in mind as you’re negotiating.
Debt Settlement Attorney In San Diego
Many of these tips on dealing with holiday credit card debt you can handle yourself, but trying to settle or negotiate with a creditor can be difficult. You may not be aware of your legal options, and the laws governing your rights and remedies are quite complex. There are attorneys and other experts who can assist with your situation so contact a debt settlement attorney in San Diego to discuss your circumstances.
Daniel R. Gamez, an attorney focusing exclusively in debt settlement, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in La Jolla, CA. For more information, please contact Daniel Gamez at 858-217-5051, email@example.com or visit gamezlawfirm.com.