Hi folks, J.G. Wentworth here. As a company that specializes in offering lump sums of cash for structured settlement or annuity payments, we know that many of our customers are struggling with their monthly credit card payments. With that in mind, here are seven tips that may help you make your credit card debts far more manageable.
1) Make a budget – and stick to it
Sadly, there are still many consumers deeply in debt who do not follow this basic advice. So get a handle on your spending! Make a note of everything you spend, review it at the end of the week – and then start cutting back on things that you simply do not need. This is a good first step to reducing your debt.
2) Pay down your biggest debts first
Have a credit card that charges you a higher interest rate than others? Pay that one down first; it’s the one that can cost you the most over time. Then, continue to move down the line with your other credit card debts on which interest rate is the next highest, until you have paid all of them off in full.
3) Stop paying the monthly minimums
Falling into the “paying just the minimum” trap can cause incomparable damage to your finances. When you pay the minimum, you are barely getting at the source of the debt, and will end up spending much more paying off the debt, than what the original charge was.
4) Don’t be shy about asking for help
Though there are numerous pitfalls from various disreputable companies dealing with credit card debt, there are certainly legitimate debt counseling and consolidating agencies that can help you. Just do your research, find one you feel you can trust, and ask for their help.
5) Find a credit card that best serves you
Credit cards offer a wide range of perks and services. Your best bet is to find one from a reputable company that is true to their word and offers great benefits of personal use to you – and to use that as your primary, even exclusive, credit card.
6) Find out your credit score – and learn how to raise it
Knowing your credit score, and learning what it takes to raise it, is immensely important when it comes to purchasing essential “large ticket” items like a car or a home.
7) Be extremely careful about going into retirement savings to pay down your debts
Many people consider using their retirement funds when it comes to paying down debts. While some financial situations are unavoidable, the general rule is that your retirement accounts should be among the last things you touch. They are there to safeguard your financial future, and are extremely valuable in the long term.
We hope these general tips give you a good jumpstart on the healthy management of credit cards and personal debts. While we cannot offer you financial advice, we are always pulling for our customers to get out of debt as fast as they can – and to live the financially successful life we know they deserve. And as always, if you would like to speak to one of our account executives about selling your structured settlement or annuity payments, please give J.G. Wentworth a call at 877-227-4713.
Every individual’s financial situation is unique. J.G. Wentworth and its representatives do not provide financial, legal or tax advice. You should consult a qualified tax, financial and/or legal professional for advice and information concerning your particular situation.