Paying off what you owe helps control your financial situation so you can enjoy normal spending patterns again. Managing credit card debt includes prioritizing expenses and budgeting techniques to keep your payments in line. Don't worry. You can still party the night away while banishing financial worries or hassles with collectors. Computer software programs make it easier to pay down your debt, maintain a budget and create plans to save money so you can continue your life of occasional debauchery.
First, if you find yourself drowning in debt, contact your credit card companies. Explain to them the difficulties you have making ends meet. You can usually work out a modified payment plan that reduces your payments or even lowers interest rates, depending on your credit history. Credit card companies want your continued business and don’t want to write off your accounts to collection agencies. Do everything you can to avoid late payments that raise interest rates and damage your credit score. By all means, don't build up debt that puts you several months behind and leaves you dealing with annoying calls from debt collectors.
You may not have the time or expertise you desire to manage your credit card debt as well as other finances for the month. Fortunately, software makes it easier for you to tackle your finances. Companies such as Quicken, Mint.com and others offer effective software programs for money management. You keep track of your financial records and checks to find ways of paying off credit cards. You get an overview of all your bank, credit card and investment accounts in one place to manage personal and business finances. The software allows you to set goals and save money to avoid debt problems in the future.
Calculators and Tools
Many websites offer tools and software you can download to manage your debt. A credit card debt repayment calculator from CNET calculates the months it takes to pay off credit card debts and figure out total interest to pay during the repayment period. Other sites offer free software with tools to pay off debts faster by tracking your personal finances without the difficulty of manually entering details into a spreadsheet.
Software for credit card management also offers methods to pay off your debts. For example, a program from Creditable shows you how to pay off your debts from the smallest to the largest, starting with the smallest. When you pay off your smallest debt, you apply those old payments to the next smallest debt. The program helps you build momentum to roll over your previous payments to current debts to provide you with larger payments that will get you out of debt faster.
Software helps guide you through credit card debt management, but the final decisions rest with you. Try to pay more than the minimum amount each month so you can lower your balances, making it easier to pay debts each month. By focusing on your monthly payments through a software program you may gradually and smoothly emerge from and remain free of problems with debt.
- Jupiterimages/Comstock/Getty Images