When it comes to legal credit card debt elimination, there are a variety of strategies and options available to help you legally eliminate your credit card debt. While options such as bankruptcy and credit counseling exist, these can negatively impact your credit score. Instead, you can follow several widely accepted guidelines aimed at legal credit card debt elimination which we will outline here.
The first step toward legal credit card debt elimination is to clearly identify all of your outstanding credit card balances. This can easily be done in an Excel spreadsheet or even on paper. Be sure to list all of the accounts, outstanding balances, minimum payments, and interest rates (very important). The primary rule here for legal credit card debt elimination is that high interest rates are your enemy. This is the first thing you need to tackle.
A very good strategy for legal credit card debt elimination is to transfer balances from higher interest rate cards to lower ones. While you the principal amount you still need to pay off will be the same, you will pay less in interest via this method. You can either increase your credit limit on your lowest interest card and transfer the higher interest balances to that card, or you can do some research and open a new card with a lower APR and transfer your balances to that card. There may even be 0% APR cards you can use for this, however be sure that after the 0% introductory rate expires that the resulting long term interest rate is still favorable.
Another legal credit card debt elimination strategy that can be used in conjunction with the above method is to contact your credit card companies and request lower interest rates. This works out for them because it makes it easier for to make your payments (thus giving the credit card company a higher probability of collecting money from you) while at the same time saving you money. Even if you are consolidating your credit card debt to one card, see if you can lower the interest rate on that one card through negotiation. This is a very important legal credit card debt elimination method that should not be overlooked.
An alternative legal credit card debt elimination tool to consider is a credit card debt consolidation loan. You can use a home equity loan to accomplish this and often get a much lower interest rate than a card will provide, however you are essentially placing your home as collateral on this loan so this must be considered. While this is not for everyone, it is a legal credit card debt elimination option that will be the right choice for some individuals.
It is also important to adjust your spending habits and lifestyle to prevent future credit card debt, once you have used legal credit card debt elimination methods to rid yourself of this burden.
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