How to Settle your Credit Card Debt

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How to Settle your Credit Card Debt

• Written by Lawrence D.

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• If you do not manage your debt well, then it can
  leave you with one of the worst feelings while
  opening a credit card statement where you know
  you cannot make the minimum repayment, let alone
  settling off the entire credit card debt. These
  times can be very stressful and if they prolong
  then it can cause you serious personal and
  financial troubles. Managing your credit card
  debt is very important. Following tips will be
  very helpful

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Do you understand your Credit Card Limit?

• The first thing you need to understand is that
  your Credit Card Limit is a limit, not a
  target. It is easy to understand why so many
  people go outside their credit card limit in the
  very first month they forget that their credit
  card limit is the maximum that they can use and
  it is not the amount that they must use.
  Therefore, be honest to yourself and ask yourself
  will you be able to repay your credit card
  debt, as per your current financial status. If
  you are overwhelmed with your credit card debt,
  then it is better to ask your credit card company
  to reduce your credit card limit. It will help
  you in managing your debt. And once you are
  comfortable with your financial position and your
  spending habits, you can always ask them to
  increase your limit again. 

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Can you lower your Credit Card APR (Annual
Percentage Rate)?

• Your Credit Card APR, i.e. the interest rate on
  which you repay your credit card debt, depends on
  your credit score. Therefore, if you ensure a
  good credit score for yourself, then you may pay
  less interest on your outstanding credit card
  debt.

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Are you afraid of your Credit Card Statement ?

• If you are not comfortable receiving your credit
  card statement then you may be afraid of reading
  it as well. However, it is very important that
  you spend time reading your statement, so that
  you can find any miscalculated extra charges,
  like late payment fees, which can increase your
  credit card debt and thus your minimum monthly
  payment. If you are paying what you guessed you
  should pay, rather than the amount that is
  mentioned at your credit card statement, then
  they will charge you some additional fees. And
  this ramping up of extra fees continues.
  Therefore, it is better that you read you credit
  card statement well. Credit card debt
  management bottles down to just two things how
  much credit card debt you owe and how much credit
  is available on your card. And beware of this
  damaging thought that many people have - you
  repaid your debt this month, does not mean that
  you necessarily take debt from your credit card
  once again the next month. If you want to manage
  your credit card debt well, then repay the debt
  and do not use the credit card again for some
  time.