How to pay off credit card debt

If you are in debt on a credit card, it is worth cutting costs and contacting the bank for a change in conditions. In a more difficult situation, it is worth considering refinancing and checking if your status allows you to have special preferences for a loan. Anastasia Khrustaleva, senior vice president of the investment company Fontvielle, told URA.RU about this.

“If a difficult situation arises and delays in payments threaten, or a debt has already formed and it is accumulating, then we must act quickly. You can advise to reduce costs, pay attention to financial discipline, do not take a credit card with you where there are risks of spontaneous and emotional spending. You should also consider refinancing. Sometimes obtaining a consumer loan in another bank with more loyal conditions may allow you to pay less,” said Anastasia Khrustaleva.

If more profitable refinancing offers are not found, then the task of the borrower with financial difficulties is to try to reduce the increasing penalties for late payments on the loan, the expert noted. “To do this, you can ask the bank to revise the terms of payments. For example, increase the repayment period by reducing the monthly payment amount, or changing the purpose of payments. Under the terms of the repayment of the loan, the amounts contributed may be directed first to the repayment of penalties or interest, so the total debt may accumulate if the principal is not repaid. You can apply for a loan holiday. It is worth studying the law or consulting with a lawyer to see if you are entitled to any preferences on loans issued, based on the status of your family or financial situation, ”the agency’s interlocutor explained.