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Lynn Caison Johnson's Blog

By Lynn Caison Johnson | Agent in Rockport, TX

How to Reduce Credit Card Bills Other Than the Debt Relief Options

Though there are various debt relief options through which you may be able to reduce your credit card debts and pay those down too, it is more important for you to use some strategies, that are ultimately going to help with elimination of the debt problems from the root. Through credit card consolidation, you can easily pay down your credit card bills, as these get rolled over into a single debt, with lowered interest rate. In case of debt settlement, it is the outstanding debt amount, which gets lowered. However, if you do not change your habits, there is no point paying down the debts. You will soon end up deep in debt, yet again.

Strategies that may help reduce credit card bills

There are various strategies that may help you with the reduction of the credit card bills or debts. These are:

  • Reduction in the usage of credit cards – In order to reduce credit card debt, you will first be required to lower the usage of the credit cards. This is supposed to help you put a control over the debt amount or the number of bills from increasing, all the more. Thus, it becomes easier to manage and pay off your credit card bills.
  • Lowering your expenses at the most – You will be required to try and lower all of your other expenses, which are not that necessary. This too helps you in putting a proper control over the debt amount form increasing. If you can lower the expenses, you may also be able to have more of the free money in hand, which you may be able to use towards bill pay off.
  • Following a proper budget – A proper budgeting is going to help you with lowering the expenses as much as possible. Budgeting helps you to keep tab of your total income and also the expenses – both static and the variable ones.

    Debt relief options which help reduce credit card bills

    There is only one debt relief option which does help with the reduction of the credit card debt amount. That is debt settlement. If you are having problems in making the credit card debt payments, you can talk to your creditors regarding the problem, you are having. You will be required to request the creditors to agree to settle your credit card bills or debts.

    If the creditor agrees to your request, the outstanding bill amount which you owe to the creditor, gets reduced by a certain percentage. This settlement percentage depends on the discretion and the terms and conditions of the creditor. However, in general, it is considered that most of the creditors do settle the debts in the range of 40-60%.

    Another thing which you will be required to keep in mind, with regards to the settlement is that, you will be required to miss payments, before the creditors do agree to your request. Without you missing the payments, no creditors will ever believe that you are low on afford ability.

  • Published, September 20, 2012, Sophia Garfield, Realty Times

    Comments

    By Carla Pennington, Realtor(R),  Fri Sep 28 2012, 15:03
    I've wondered if using the debt settlement companies negatively impacts your credit. Obviously, missing payments will, but when a client has contacted the debt settlement company and they've negotiated a lower amount, and they've made the payments on that lower amount, does their credit take a hit?
    By Lynn Caison Johnson,  Mon Oct 1 2012, 07:37
    I thought the same thing-actually, I thought..hmm...is there some sort of "punnishment" (for lack of better term) for the reduction in debt....

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