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The credit card is an important part of our consumer culture nowadays. It is a good source of funds for emergency situations. However, some customers would be tempted to live beyond their means if they keep using their credit cards.

How to Reduce, or Eliminate, Credit Card Debt

There are ways in which you can reduce credit card debt. These are the options available to you:

1. IVA. A part of the debt could be written off if you agreed to an IVA contract.
2. Debt consolidation loan. This could either be a secured or unsecured loan. This method could offer you lower APR (Annual Percentage Rate) and lower monthly repayments.
3. 0% Balance Transfer Deals. These are deals offered by most credit card companies. What 0% balance transfer deals mean is that you switch your debt to another credit card company at regular intervals. At best, this could mean no interest payments for you. However, you need to keep in mind that your debt remains the same even if it is at 0%. Also, you are required to pay the same monthly repayment amount. The good thing is it can reduce the length of time you need to pay the debt in full. If you have debts on several credit cars, then you can use 0% balance transfer deals and combine it with the “snowballing” strategy.
4. Snowballing. This means transferring your credit card debt to the 0% balance transfer deals. Then you make the most payments on the card with the highest APR and make minimal payments on those with lesser APR until you paid off your debt completely. And you do the same thing to your other debts until all your debts are fully paid.
5. Talk to the credit card provider. If your credit rating is not good and you are not allowed to restructure your credit card through a loan or 0% balance transfer deal then you need to talk to the credit card company and inform them of your situation so that they will lower your monthly repayments. You may also hire the services of insolvency practitioner or debt counsellor to negotiate in your behalf. When you approach them be ready with a personal budget and come up with reasonable repayment figures.