Many Americans carry credit card debt. That's because paying in
cash is painful -- it's easier to rationalize a purchase when we
can say, "I'll pay it off later." There's nothing wrong with
carrying some debt if we're meeting or exceeding our monthly
minimum payments. (In fact, it's always best to pay more than the
minimum payment to reduce finance charges.) But unless we stick to
a rigorous payment plan, debt can grow and grow until it's
unmanageable. Try these savvy money tips to get your finances in
order.
Get a better rate
Call your credit card company and get your interest rate
lowered by quoting a competitors' rate and politely informing the
representative that you're planning to transfer your balance and
cancel your account. (One survey found that more than half the
people who placed a five-minute call to their credit card company
asking for a lower rate actually got it, and slashed their interest
by more than a third.) Of course, you'll have more success if you
have a history of paying bills on time.
Be honest about your level of debt
Are you hiding spending and debt from your family? Feeling
elevated -- then guilty -- when you borrow? Are you willfully
ignorant about what you owe? If you answered yes to any of these
questions, you might benefit from a program like Debtors Anonymous
(DA). DA is a spiritually-based, 12-step program designed to
provide "debt addicts" with budgeting, debt repayment plans and
peer support. To learn more or to find a chapter in your area, call
781-453-2743 or log on to
www.debtorsanonymous.org.
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