If you’re only dealing with credit card debt, you might be able to get it reduced without entering into any formal insolvency solution.
The very first thing you should do when addressing credit card debt is to stop using it for any transactions if possible.
Next, you should try calling your credit card company and explaining your situation to them. You’d be surprised at what can be achieved with a simple phone call.
Inform them of your financial circumstances and always mention that you can provide proof and documentation of it if needed as well.
As a result of this, your credit card provider might lower your interest rate or they might be able to give you a payment break to get your financial affairs in order.
Another thing you can do with credit cards is transfer your balance to one with a lower interest rate in order to reduce your debt.
So, let’s talk about balance transfer and credit cards:
The way this would work is that if you have outstanding balance on your credit card, you would transfer that balance onto another credit card that has a rate of interest lower than the one on your initial credit card.
In this way, you would lower the amount of interest you have to pay, thus, lowering the amount of money you have to pay overall.
One thing you have to keep in mind when using balance transfer between credit cards is the fee for transferring outstanding balance. Some credit cards have very high fees which would defeat the purpose of lowering your debt in this way.
For more information on reducing credit card and other unsecured debt, click here.