Reduce Your Credit Card Debt

The way you use credit will affect your credit history. A negative credit history is a serious liability. Where your credit card has been suspended or cancelled by your bank by reason of default in payment another bank considering your application may obtain details of such default from your previous bank.

Here are some things you should know about getting off the revolving credit merry-go-round:

Pay more than the minimum payment each month, if you ever hope to pay off your credit card debt. You must also pay on time or a finance charge will be added onto the total, creating a larger minimum payment for the next month -- and a higher finance charge added to the total again if you don't pay it.

Organise your finances. You need your own deadline each month for paying bills. There are great software programs for keeping track of your financial records. If you have a limited budget for debt reduction, write letters to each of your card issuers acknowledging the situation, and tell each one when you can begin repayment. They'll appreciate your openness and likely be a lot nicer to you. You'll get yourself some breathing space (something we all need when we're dug in deep), and dealing rather than hiding will help boost your bruised self-esteem.

Allocate funds to your creditors in proportion to how much you owe. If you have a limited budget for debt repayment, write down what you can pay each creditor each month. Apportion and prioritize your repayment.

Finally, stay calm. It will make you feel better. And remember, card issuers are more than willing to help you if you are committed and sincere to repay your debts.