Description: Know how you can deal with excessive credit card debt and relieve your anxieties.

How can you tackle excessive credit card debt?

If you have piled up excessive credit card debt, it can truly cause you to have nightmares. The first thing that you should do to avoid excessive credit card debt is to stop using your credit cards and prevent acquiring further debt. If you get out of debt, it’s quite natural that you would fall into debt once again if you don’t rectify your spending habits. If you want to knock off your excessive credit card debt, you can use the tips given below:

Try to discount your huge credit card debt

You can go for credit card debt settlement. You can discount up to 50% of your original balance through negotiation. When you can’t keep up with your monthly card payments, debt settlement can work as a better solution for you. If the credit card companies realize that you’re on the way to filing bankruptcy, they would be willing to receive a payment which is as low as 50% of your original balance. You can send a letter to your credit card company, clarifying your financial condition and how you would arrange for the money to pay them off. Inform them that you’re thinking about bankruptcy but you want to settle your debts if the creditors are ready to accept it. Most companies would agree to settle since they know if you go for bankruptcy, they wouldn’t get a penny.

Pay off your credit card debts competently

When you’re trying to address your debt problems, you should always try to repay your high-interest credit cards in the first place. Budget a certain amount of money to pay on your cards each month. Make the minimum payments for other cards while directing the rest of your money to the card with the maximum interest rate. Once the card is paid off, shift to the card with the second highest interest rate. In this way, you can save a significant amount of money on interest charges. It is the quickest means to eliminate credit card debt.

Some other tips to deal with excessive credit card debt          

Don’t buy credit card insurance. In the event of an injury or unemployment, this type of insurance stops your payments. It is a costly form of insurance that doesn’t essentially help you get rid of debt rather delays your payments.

Don’t buy credit card security insurance. This insurance compensates for unauthorized charges if your card gets stolen. As many cards are now offered with zero liability clauses, it’s not so essential.

Don’t go for a consolidation loan to pay off your cards since you might end up paying a huge amount on interest.


If none of the above techniques works for you, then you can consult a credit counseling agency. They can help you negotiate better rates or advise you on how to lower your huge debt burden.