Credit card debts rank high up there in the list of stressors of modern living. Yet, according to some experts, having a certain amount of credit balance is not totally a bad thing since the purchases we have made using these cards are necessary ones. However, they do agree that only 10 to 15% of one’s income should go into credit card payments. If this amount could not even cover the minimum payments for your outstanding debts, then you might be in serious trouble, leaving you with no other option but to start dealing with those debts right away.

Create a Debt Management Plan

Right now, there are so many options you can take to deal with this problem, for example, you can avail of a credit card debt consolidation service to help you manage your individual credit card debts. However, to help you get on the right track, you need to first create your debt management plan. By drawing up this plan, you will be able to identify your debts, be able to set aside money for debt payments, and prioritize these payments according to interest rates. As you do so, you will also be able to identify which debts can be handled independently or which ones you need to refer to experts, such as a student loan debt consolidation for your outstanding school loans, if you have any. Your debt management plan should also include a spending tracker in which you will list down expenditures, minimize these, and transfer the money you would have spent on these unnecessary expenditures into debt payments.

Consolidate your Loans

Once you have organized your debts, you might discover that one of the main reasons why you are unable to make payments on time is because you are dealing with so many individual credit card bills in a month, making you lose track of due dates that, when missed, could result in late payments and charges. You will also be surprised to discover the amount of extra money you are spending for compounded interests and later payments that could have been avoided in the first place. If this is the case, then consider seeking credit card debt consolidation service. With this kind of service, you can avail of a consolidated loan that will enable you to pay off all your credit card debts and then transfer the balance to the new company or agency which provided the consolidated loan. If you are also still dealing with your student loans, consider getting a student loan debt consolidation service as well so that you will be able to deal with your debts all at the same time.

Practice Discipline

Once you have drawn up a plan and consolidated your loans, the next most important step is to stick to this plan by practicing discipline and tenacity when dealing with debt payments. Practicing discipline and tenacity would entail that you limit your spending on a daily basis so as to save money to pay for your newly consolidated debts. Some examples of how you can save money to pay for your debts include eating at home rather than dining out often, shopping at thrift stores, brown bagging your lunch at least three times a week, etc. Remember, apart from availing of an effective credit card debt consolidation service, it will be your discipline that will ultimately get you out of debt.