Most people who are currently dealing with some type of financial difficulty find themselves in that situation at least partly due to an extremely large amount of credit card debt. Even though you can get out of credit card debt by taking the proper steps, many people are simply so overwhelmed by their debt that, instead of dealing with things sensibly, they panic.
Most people fall into the traps of credit cards innocently enough and the majority of people start out thinking that it is only a few hundred here and a few hundred there and then they are in over their heads before they know it.
An individual who is deep in credit card debt must seriously analyze their situation in order to figure out how they can get out of it. Ignoring steadily growing debt will never make it go away and doing so will only make the problem worse in the end.
Credit card debt can be scary and potentially devastating, but it does not have to be. As with most problems, there is a definite solution to credit card debt, though the specific solution depends on each person's particular situation and financial circumstances.
Options Available to You
If you need to eliminate debt, there are many options available. Before you turn to a third party for assistance, do your best to get rid of your debt yourself.
You must start with a list of everything you owe with what the monthly payments are and what the total balance is that you owe. Start by calling each creditor you owe to discuss your desire to clear them up and that you need help in order to get out of credit card debt.
Although it is not true in all cases, many credit card companies are willing to work with you to help you get rid of debt. They may decide to lower or even eliminate your interest rate for a fixed amount of time so that you are better able to reduce the balance you owe them.
Best Credit Card To Get
If you're looking for the right credit card, you've no doubt noticed that there's a dictionary's worth of terminology involving them. Two terms that cause a lot of confusion for young people are "student credit cards" and "secure credit cards". What are they? Is there any difference between the two? Which one is best for your budget and lifestyle? Here's a quick rundown:
A student credit card is just that: a credit card aimed at students. Basically, student credit cards are no different than regular ones, except that they're marketed specifically to students, sometimes "branded" with cool logos and such. HOWEVER, be careful when choosing a student credit card because some of them carry a high interest rate and fees, which could be a problem if you're living on a tight budget.
At the same time, some experts recommend that students who don't yet have a credit history should start out with a card that offers an APR (Annual Percentage Rate) of about 16 to 17 percent or lower, although many credit cards offer special introductory rates such as 0 percent for the first 6 to 12 months. Just remember to stay away from cards that offer an APR of 20 percent or higher.
On the other hand, secured credit cards require a deposit from the account holder as a form of collateral. This deposit is put into a savings account, and the card's limit usually equals the deposit amount. In this sense, a secured card is somewhat similar to a debit card. But again, some secured cards can have high annual fees, and can come with higher interest rates.
The benefit of using a secured card is that you don't have to worry about owing money that you can't afford, since when you make purchases, you're only withdrawing from money you've already deposited in the account. As a result, you get the benefit of building your credit like you would with a regular card, but without the potential negatives. At the same time, you also have to be consistent in paying any monthly charges on time. Otherwise, the balance on your security deposit could end up being used to pay any outstanding interest charges, which could be a negative strike against your credit.
In the end, both student and secured credit cards have pros and cons. It may seem like a pain, but research pays off. Do your homework while looking around for the right card and you can reap rewards in the form of lower interest rates and annual fees.
Both William Blake & Keith Adams are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
William Blake has sinced written about articles on various topics from Credit Cards, Debt Reductions and Bankruptcy Law. Is credit card bill consolidation the right way to get your credit cards cleared? Not necessarily. Find out why on the. William Blake's top article generates over 49500 views. Bookmark William Blake to your Favourites.
Keith Adams has sinced written about articles on various topics from Credit Cards, Student Credit Cards and Credit Cards. Keith Adams is based in New York City and writes about credit, finance and other topics. You can read more credit articles on his blog, . Keith Adams's top article generates over 4400 views. Bookmark Keith Adams to your Favourites.
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