Do It Yourself Credit Card Debt Reduction and Relief

Each year several million Americans file bankruptcy. Millions more enroll in debt relief programs through credit counseling and debt settlement companies. Oftentimes, however, a consumer is best served by taking simple yet important steps for debt reduction. The following is a brief list of basic ways consumers can get debt relief without third party help:

1. Pay more than the minimum payments each month – This is the simplest yet all too often overlooked path to debt reduction. With high interest credit cards, finance charges can amount to far more than the majority of the minimum payment. In other words, each time a consumer pays the minimum very little of the principal balance actually goes down.

2. Manage your debt with Excel or debt reduction software – By using a system for paying your bills, the likelihood of late payments is reduced significantly. By paying on time, consumers can avoid costly late fees or triggering the high interest rates written in the small print of every credit card contract. Some popular debt reduction programs include Quicken and Managing Your Money by Microsoft.

3. Negotiate lower interest rates with the credit card companies yourself – Before enrolling in a credit counseling debt relief program, try negotiating lower interest rates with the credit card companies on your own. In the end you can save far more money by avoiding agency monthly maintenance fees, as well as the black mark of being enrolled in a debt management plan (DMP) on your credit.

4. Budget more effectively – Figure out exactly what money you have available to pay your credit cards. By doing this, you can use you disposable income to put towards the card with the highest interest rate. This will cut down on the timeline until you’re debt free, which means you pay less to get out of debt.