Outlook Money
Credit card debt can become a huge drain on finances and cause anxiety about the long-term effects on financial stability.
1. Evaluate Finances
First, one should understand the financial position. The credit card and bank statements should be kept to evaluate total debt, interest rates, and minimum payments.
For managing credit card debt, accounting properly is an essential step. One should Keep a record of income and expenses—including those minimum credit card payments which helps in keeping tabs on spending.
One should make minimum payments on all credit cards to avoid an extra late fee and to keep up a good credit score. One may want to use the debt avalanche strategy—paying the highest-interest credit card first. This helps in saving money from interest added over time.
People can call credit card companies and negotiate. Lower interest rates, extension of due dates, or even help with hardship programs can be asked from them.
If one is unable to control credit card debts, then the help of a certified credit counsellor should be taken. They assess the situation, make a personalized plan for debt management, and negotiate on your behalf with the creditors.