Fixing credit card debt problems - Part 2

5. HOW MUCH DO YOU REALLY OWE?

Total the money you spend each month paying off those credit cards - wow - wouldn't it be great to have that fun amount to play with every month. Well that's what you will have once you get rid of that accursed debt. Be single minded about this.

Think of all the good things you and your family could do once a little bit of time passes AFTER you pay off those accursed things. And you could pay cash for them - not value plus 18 to 22%. Other people do this so why can't you?

6. WARNING SIGNS OF TOO MUCH CREDIT CARD DEBT: 

a) You don't even know how much credit card debt you are in.

b) You have at least one credit card that is at or over the limit

c) You only make the minimum payment each month on the credit cards

d) You believe you are only one good Lotto win from fixing it all up

e) You use cash advances to sustain your lifestyle

f) You lie to friends and family about your debt or, MORE IMPORTANTLY, you lie to yourself about it.
g) Your credit cards are more than 70% of their credit card limit

7. ASK FOR A LOWER INTEREST RATE ON CREDIT CARDS

Grab a bill from any account charging you more than, say, 14% interest. Dial the toll-free number on the bill and ask to have your rate reduced -- say, to 11%. Tell them that you'd really like to stay with them out of customer loyalty (embellish according to your acting skills), but that you have received offers for much-lower-rate or interest free transfer debt cards.

Expect to be made to feel very uncomfortable, but stand firm and remember that, to them, you are both a customer and a cash cow. That's right - you are their profit centre and if they can't stop dipping in to your pocket every month. they go broke as well. And they don't want now do they? Gosh, how would they ever keep up the golf club memberships?

You also stand to save a bundle. Remember the more calls you make, the more persuasive you'll become and the better you will become at this game. And don't think to yourself, "oh I could never pull that off", you would be amazed how many people do. And they are people just like you. And yes It does work. Just like sex, once you do it the first time it kind of comes naturally.

If you never ring them and ask, you'll never know what they would have said! And what's the worst possible outcome from the credit card company? So they say no.

8. REDUCE THE CREDIT CARD LIMITS

As you pay down the amount owing on each credit card, make a point of reducing the limit to match the amount owed as it gets less and less. In that way, you will not be able to book up more debt on the cards.

Yes, it a pain in the proverbial doing this on a regular basis but as you do it, you will come to realise just how much in debt you are and how much these credit card companies have been taking advantage of your credit addiction to feather their own well lined corporate nests.

9. REMEMBER THIS ABOUT CREDIT CARD DEBT

One of the smartest moves you can make is to tell the credit card companies involved that you are in strife and need help. The last thing they want to do is have to deal with other Australian companies that do Debt Relief Management Agreements or the Official Receiver In Bankruptcy. Those are bad options for any credit card company with only the certainty of loss as a result for them and they will generally go out of their way to help you overcome your problems as there is then still some chance of profit.

Ring them up and tell them if you really are at the desperation/no possible other options stage.

Thanks to http://creditcarddebtproblems.com.au/ for this information