One of the most unsightly things you may have around the house is unfortunately one thing take forever to clean out. A mounting pile of credit cards with ever-increasing amounts forebodes the hellish task and sadly, reality of eliminating incurred debts and balances. It might surprise, you, however, that with a little bit of work, patience and determination, you can slowly eat away at hose debts towards realizing your goal of  easier, balance-free living. The elephant in the room, of course is that current card debt.

To tackle that, you will need a workable plan, one that you can stick to with a firm resolve. You need to create a clearer picture of your current standing by listing down all the active credit cards in your possession together with their corresponding APRS. Having done so, add up all the balances along with the APRS such that you can now see exactly how large your credit card debt is. Make sure to remember checking if you have been paying any additional fees such as penalties for late payments or if you have defaulted on any of your cards. This happens if a credit card is unpaid for more than one billing cycle which is usually 60 to 90 days, depending on the card company. The account will be sent to collections after 180 days. The next thing that you will have to do is to take a look at your current financial status and then try to determine what your future is like.

Take a look at all of the financial offers that you might have received to see if there is anything to be gained from transferring balances. Also, look at how much you will be able to pay across all of your credit card debt and check to see how much you can probably pay at present. Of course, during this time, you should try and avoid late fees that will add to your credit card debt and make your financial problem more difficult to clean up. In the case that you may need to have a credit card to help out while cleaning up on all your other cards, you may consider the use of prepaid credit card accounts, if not secured credit cards. 

A prepaid credit card account is created by depositing some money into that account in the same manner that you would be required to make a deposit to open a checking or savings account with a bank or other finance company. Once the money has been deposited in your account, you will be issued a prepaid credit card that can be used anywhere one would use a regular credit card. Secured credit cards, on the other hand, are protected with a deposit that’s held in an account and used only when you default on your payments. Note that some creditors only use your initial deposit in cases of severe delinquency, say 5 -6 months past due. Some secured credit cards, however, place deposits in an interest-bearing account, as some sort of penalty or compensation.

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