Credit card debt counselling is meant to help people deal with large amounts of debt that can build up without them noticing. High interest rates and fees for being late on payments can make it hard to handle.
The best way to deal with credit card debt is to pay off a small amount every week. It is much easier to pay off the money you spend every week than it is to pay the whole bill every month. Also, because credit card companies charge interest based on the hourly balance, paying the weekly amount spent reduces the total amount of interest you have to pay. Since credit cards charge interest by the hour, getting a bill once a week seems to cut down on the total amount of interest paid. Also, a credit card bill every week seems less overwhelming than a bill every month.
The person with the credit card can also talk to the Consumer Counseling Center of America or another service like it. These groups are non-profit and run on their own. They help people who are in serious financial trouble. The counsellors will look at the amount of debt and make a plan for how to get rid of it. They will talk to your creditors about lowering the interest rate and the amount you have to pay each month. The CCCA, in particular, offers other services, such as bringing past-due accounts up to date, stopping creditors from likely harassing you, keeping up with payments, which will also help your credit score, and settling loans and accounts that are very far behind.
To get the most out of an organisation like CCCA, you have to be responsible with your money, especially when it comes to resisting the urge to shop. No counselling service will work if you don't spend money on things you don't need and don't pay your credit card bills on time. Close all of your credit card accounts except for one that you can use in an emergency. This emergency card should have a low credit limit and interest rate. Transferring credit card balances to a company with low interest rates is another good idea, but keep track of the 0% interest rate transfers. Most of the time, these rates are part of a special offer that will end, at which point they will go back to the high standard rate. But the time period with a low interest rate is a good chance to reduce the total amount of your debt because your payments will go toward the principal balance instead of the interest. Credit consolidation is another thing to think about, but be careful about the high interest rates that come with it.
But when looking for a counselling service, be careful of companies that say they can get rid of your credit card debt for a small fee. Find out about the organization's history before agreeing to help them. In the end, though, the person with the debt is the best person to reduce it. Make a budget that is reasonable and stick to it. You won't have to worry about credit card or other loan debt anymore, and you'll be able to live a debt-free life.
