If you have a card that carries a balance of over 50% of the limit, you should pay it down to below 50%. Carrying a balance of more than half your credit limit negatively impacts your credit score. Either pay this balance down or spread it out over multiple cards.
You can lower your debt by refusing to acknowledge the part of your debt that has been accrued by significantly high interest rates. Creditors are skirting a fine line of law when they try to charge you exorbitant interest rates. Remember you agreed to pay any interest that accrued over the life of the account. Should you sue any creditors, it is important to push the fact that the interest rates are outrageously high.
In order to make sure that you do not overpay, know that you can dispute your really high interest rates. It is important to know the terms of your original agreement for the debt you incurred. Usually if you agreed to the terms the terms will be upheld as legal. If you believe the charges are excessive and your debtor will not negotiate down the interest and other additional charges, state laws might provide you with additional avenues to pursue a reduction in these charges. Federal law provides that when you are billed by a collection company the fees and interest cannot exceed the amount of the original debt. However, you did sign an agreement to pay the interest. If you choose to bring a lawsuit against your creditors, use the high interest rates against them.
If you do not want to pay too much, contact your creditors and tell them you will not pay on a interest rate that is astronomical. In most cases, creditors are somewhat limited in the amount of interest they can charge. Your initial agreement likely included a commitment to pay interest. If you go ahead and sue your creditors, ask that they consider the high rate of interest.
You must pay your bills consistently if you want to repair your credit. You can't just pay whatever you want whenever you want. You need to pay your entire balance when it's due. When you pay off past due lines of credit your credit score will go up.
Put the spending brakes on yourself by lowering your credit limit on all of your cards. It will keep you from overextending yourself financially, it sends a great signal to the credit card companies that you are a responsible borrower, and you will have an easier time getting credit in the future.
Stop spending more money than you have available. You will have to change the way you think in order to do this correctly. The rise of consumer credit in the past few years has made it far too easy to buy items without being able to pay, and the bills are coming due. It is important to look closely at your finances and see what you can actually afford and what you can not.
Take the time to carefully go over your monthly credit card statement. Make sure you aren't paying for purchases you didn't make. You are the person responsible for checking that there are no errors.
Credit card usage should be eliminated. Pay for everything with cold, hard cash. unsecured personal loans bad credit