The Big Cs....Credit Cards
Sara Faitelson • September 14, 2020
The Big Cs.....Credit Cards
Hello blog readers. I decided to write this time about a topic that I am getting multiple calls about just in this past week: credit card debt. A lot of referrals have been stating they have a ton of debt because a: they lost their job, b: they were out of the job for a few months and returned back to work, or c: they are helping their children who have lost their job. We are living in some unprecedented times. How do you stop yourself from drowning in credit card debt?
One way is the power of negotiation. I cannot tell you how many people do not realize they can negotiate with the credit card company on how much interest they should pay per month. It is a game changer. It is really important to let the credit company know that you are going through a hard time financially and they will try to accommodate as much as they can. You may wonder: why would they do that?
Companies want to get paid for their goods and services and if you never pay them back, that does not help their bottom line. They are willing to negotiate because they have no other choice right now. What other steps can you take?
Another thing to look at is look at how much do you owe on each credit card. You want to go after the smaller balances first. This makes someone feel in financial control. Once they see they can knock out one credit card at a time, they are more willing to stay on track with their game plan. It is important to see progress.
Interest rates are so low that some clients are refinancing their homes at a much lower interest rate. Then they are using the additional money they are saving on their mortgage and allocating that amount to pay off their credit cards faster.
You can take control of your credit card debt with a little will power and a good game plan.
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