How to deal with post vacation credit card debt

Many people refuse to compromise when it comes to planning a vacation. It is understandable that you work very hard throughout the year and you indeed deserve to unwind yourself. But that certainly does not justify spending a fortune on a fleeting vacation. Unfortunately, that’s what most people do. They use credit cards indiscriminately during vacations and find themselves in a financial crisis once they are back. If you are facing the same situation then the following tips can be helpful:

Balance transfer for manageable credit card debt

After returning from vacation, analyze your debts. Balance transfer can be the answer to small debts. This refers to transferring the balances in your credit cards to a new and low interest card. This move often works if you are responsible enough and your debt is well under control. You would have a single monthly payment to make and have a low interest rate. However, balance transfer usually doesn’t work if your debts are fairly large. Also, many people incur new debt instead of paying off the old ones. Finally, there is a transfer fee involved.

Debt relief for bigger debts

Debt relief programs are your option if you are sinking badly in credit card debt. These programs include debt management, debt consolidation and debt settlement. Let’s check them out briefly:

  1. Debt management: A law firm/debt settlement firm negotiates with the credit card company for lower interest rate and a new repayment plan.
  2. Debt consolidation: This involves the following steps:
    • Step 1: Hire a debt settlement firm/law firm.
    • Step 2: The firm finds you a long term consolidation loan with low rate of interest.
    • Step 3: The firm disburses the money among your creditors. All your credit card debts are paid off.
  3. Debt settlement: A professional settlement company or law firm negotiates with the lenders in order to slash your debt. You save a lot of money.

Post-vacation period is financially very important. You need to re-organize your finances and combat credit card debt during this period. So remember the above tips and enjoy the sweet memories of the vacation.

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