The causes and reasons for credit card debt troubles are many and varied, but the symptoms are always the same -- not having enough money to pay your credit card in full each month. If you combine this kind of situation with a family emergency that requires a large expenditure of cash, you can see how things can quickly get out of control.
No matter how you got there, if you can't get out of credit card debt, this article offers advice for solving your debt problem.
Get a copy of your credit report
Before you start solving your debt troubles, you first need to know exactly what the problem is. Getting a copy of our free credit card report every year is a great place to start. This will help you figure out what your situation involves and what you need to do to solve the problem.
Once you have your report in hand, look for mistakes. Sometimes you'll have an error that can be corrected with a simple phone call -- and this will dramatically improve your credit rating instantly. In turn, you may be able to qualify for a lower interest credit card that you can transfer your existing credit to.
Start paying off your debts -- the newest ones first
When you start paying off your debts, pay down the newest ones first -- as this will offer you the most immediate relief on your credit score. Your oldest debts that have been around for more than two years have already done the most damage they can do to your credit score. It's the newest ones that pose the most threat.
Be sure to pay what you owe on your debts each month, and never miss a payment. Missed payments will only serve to trigger fees and increase your interest rates -- which will delay your debt pay off process.
Consider whether it's possible to get out of debt
For some Ohio residents, it won't be possible to get out of debt given their current capacity to earn an income. As such, every person with credit problems will want to consider whether more aggressive debt resolution means -- such as bankruptcy -- could be appropriate for their situations.