Monday, April 13, 2009

Credit Card Debt problem for College Grads

As you leave college life behind, you're probably carrying a lot more around you than just a shiny new diploma. If you're like most college graduates, you have the burden of debt credit card lots of it. In fact, the average college graduate leaves school with more than $ 2000 debt to a credit card.

Of course, some of them may yet spring break trip your junior year, but most of it was probably accumulated school-related costs such as textbooks, school supplies and the food. Regardless, the debt is debt, and the worst of the debt is credit cards. You need to get rid of him as soon as you can. We know that funds are tight, but by setting up a payment plan, you can quickly eliminate the debt by credit card.

Do more than the minimum
With interest rates on credit card balances ranging as high as 18 to 23 per cent of credit card companies love for you just to pay the minimum amount each month. If you do this, the composition holds interest, and credit card company continues to grow as your debt increases. Put them on a diet; pay at least double the minimum every month on your balance. In a crunch? Who is not? Cut a little of the daily life of luxury and you will find extra money to your balance.

Bait and Switch
Credit card companies love to send promotional offers for cards boast little or no interest balance transfers for a set amount of time. Do not be so quick to discard. With a little skillful maneuvering, you can make them work to your advantage. If you have one or more cards with balances incurring a monthly interest rate high, consider moving those balances to this new rate. It can save you a ton of money. But beware, most of these cards can hit hard after the promotional period, with rates in May to be higher than what you currently pay. But if you think you can repay the balance within the promotion time, make the change.

Sacrifice your savings
Of course, this seems horrible, but draining your savings account is a way out of debt. Put it this way: the small amount of interest you get from your savings account is nothing compared to what you are paying by credit card interest. If only you could get a 18 percent return on your money! Pay that balance off in full, and he will win big in the long term.

Down and grovel
If times get really tough, consider seeking the help of your family. It is difficult to say no to a family member, and you'll probably get an interest rate quite reasonable on their part as well. All is not well too many times, you do not want to be known as the Freeloading relative. Be professional on request for a loan, even suggesting a written agreement to show how your family member you are serious about paying them back.

Drop the "B-Word" on creditors
If you still can not make your payments, contact your credit card and financial companies have a heart to heart with them. Tell them that your back against the wall financially and you have to declare bankruptcy unless you can develop a plan with them. Credit card companies least favorite word is bankruptcy. If you go in this direction, they are not paid. They have no other choice but to work with you. Ask at a lower interest rate and a slower repayment plan. If they do everything they can to help, remember, you yourself in this mess, you have yourself out.

Paid? But how
So you've begged and borrowed and some credit cards paid off. Now the challenge is to stay. First, get rid of surplus cards. You should only have one, two tops. Close the rest of these accounts as soon as you paid. You'll be less tempted to use them, and fewer cards are easier to identify. The next step: stop using credit cards all together. Leave them at home, cut them if you have, but do not use a credit card, unless it is an absolute emergency.

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Eliminate Consumer Credit card debt © Layout By Hugo Meira.