By specializing in debt compensation, you can free up money each month — even when your main objective is just having some more money to keep away from wasting. One of the more impactful methods to rapidly paying off credit card debt is to stop using the bank card. This can have plenty of positives however can also be maybe the toughest strategy to implement. It helps to modify to a debit card, which connects straight to your checking account and doesn’t charge interest.
In rare circumstances of maximum hardship, a lender might forgive a portion of the debt, significantly if the borrower demonstrates an lack of ability to repay. Because program terms and eligibility requirements differ, it’s essential to contact your lender immediately to discuss out there options. If you have $10,000 in credit card debt, you could feel like it’ll take eternally to pay your debt off. If you are able to make your minimum funds, debt consolidation could also be a suitable solution. And, when you personal your home, think about using your house equity to pay your credit cards off sooner.
How lengthy it will take to repay $20,000 in bank card debt depends on how much you presumably can pay every month and the APR. With an 18% APR and funds of $600 per thirty days, you can pay it off in forty seven months. To have extra money in your finances to pay off your bank cards, you must look for methods to scale back your spending. Negotiate contracts, corresponding to cable, internet or cellphone bills. Eliminate pointless subscriptions, similar to meals subscriptions, where you can get the products for much less by visiting a grocery store.
To assault your debt effectively, use the next strategies. Plus, a debt-consolidation loan can help simplify your finances. Instead of creating multiple funds each month, you should make just one for all the consolidated money owed. Now, I’m not suggesting you create an untenable—not to say uncomfortable—situation together with your loved ones. But in case your circumstances enable, one choice to avoid excessive rates of interest is borrowing cash interest-free from a liked one. If exploring this route, make sure to clearly document the repayment phrases and amounts in writing to guard the non-public relationship.
The Citi® Diamond Preferred® Card is one example of a Balance Transfer credit card. This card may be a fantastic possibility if you have already got a debt payoff resolution in place and need to use a Balance Transfer card to get a better handle in your rates of interest. You’ll also must be certain you’ll find a way to repay the balance in full earlier than the 0% promotional price ends as these cards can charge standard APRs as excessive as 30%. If you don’t, the transfer might wind up increasing your interest prices quite than lowering them.
Credit card debt consolidation includes utilizing a loan or credit card to repay multiple credit card balances. Consolidating credit card accounts doesn’t erase credit card debt, however it can scale back the number of month-to-month funds to manage. And relying on the phrases of the brand new debt, consolidation could supply a lowered rate of interest.
Because they see different people who discover themselves doing it different individuals we now have had this occur numerous times where individuals will name one another. What was ironic was that when we checked out how we have been spending our money previous to that had you requested us if we had an incredible life we’d be like. They’ve amassed the debt once more or they’ve received more debt than that they had earlier than.
Once the primary debt is paid, be certain to rejoice the win before moving on to aggressively paying off the debt with the subsequent highest interest rate. Taking a mortgage in opposition to your 401(k) to pay off debt ought to be an choice of final resort. For one factor, you’ll miss out on progress if the market improves. You might not be succesful of pay off all your debt with a mortgage or fall much more deeply into debt later and be unable to repay the mortgage.
New credit accounts are topic to software, credit qualification, and earnings verification. Refinancing your debt to a shorter time period could help you pay it off sooner and save on the total price of borrowing. You may have the ability to qualify for a decrease rate, or a shorter or longer loan term, depending in your state of affairs. Remember, shortening the time period of your mortgage might enhance your month-to-month funds. High rates of interest and dealing with a number of creditors are two reasons why paying off credit card debt is troublesome.
There are occasions when you’re going to wish to pause (not stop!) your debt snowball. Unexpected (and sometimes expensive) stuff happens in life, and it’s way more important to concentrate on those for a brief while until you probably can flip the gazelle depth again on with a vengeance. The debt snowball works as a outcome of it’s all about altering your habits. Trust me, you don’t must have a finance diploma or be a mathlete to beat debt.
Bankruptcy’s impact on your credit score is extreme and can final for many years, so it’s critical to explore and exhaust all other choices earlier than considering chapter. If you resolve to pursue bankruptcy, the 2 sorts mostly used for people are Chapter 7 and Chapter thirteen. The more money you’ll be able to put towards your highest-interest debt each month, the quicker you will get out of debt. During this time, you must keep away from taking on any new debt and construct an emergency fund so you do not have to borrow to cover sudden bills down the highway.
This introductory period offers you a chance to pay down your debt with out accumulating interest expenses. Since you’re not paying interest, your complete month-to-month payment goes straight in course of paying down the principal. Popularized by private finance professional Dave Ramsey, the debt snowball technique involves paying off your smallest debt first.
Pay off debt fast and save more cash with Financial Peace University. You’ll also must regulate spending caps for the elevated rewards categories. After spending $2,500 in combined expenses each quarter, your rewards fee will drop to 1%. We advocate this card to somebody who needs to pay down a stability without giving up on incomes versatile journey rewards alongside the way. This is a cash-back play that could be valuable to nearly everybody. You’re free to alter your selections every quarter, too, to match your changing life.
You can seek for licensed credit counselors in your area via the National Foundation for Credit Counseling and the Financial Counseling Association of America. Paying off a $25,000 or bigger bank card debt will take time, so train patience. But, by employing a number of the above strategies, and constantly paying greater than your minimal balance, you may repay your debt ahead of you assume.
Here’s how to do away with credit card debt for good and relieve yourself of the stress and nervousness that all the time comes with high-interest debt. A information for tips on how to get out of debt this year, whether or not it’s from a pupil mortgage, auto loan, credit card spending – or all of the above. Explore how to choose a debt reduction strategy to assist pay off your credit card debt. If you’re about to go through a divorce (or you’re in the midst of one), you’re in all probability simply making an attempt to keep your head above water both emotionally and financially. During this major life transition, you don’t need to go heavy on crushing your debt.
This will help ensure you aren’t overspending or taking up more debt. If you’re able, it might be beneficial to make lump-sum funds in your card. This will reduce the quantity of interest you pay over time and assist you to pay off the debt sooner.
Taking out a second mortgage or using a house equity line of credit score allows you to use your house as collateral to pay off different money owed. “If you pay only for wants along with your bank card, opting to pay for desires with money, then it can work out OK,” Schulz says. This article accommodates basic data and isn’t meant to supply information that is particular to American Express products and services. Similar products and services supplied by totally different companies will have completely different options and you must always read about product details earlier than buying any monetary product. Because so many of us are visual learners, it can assist to truly see your progress toward your money targets.
However, this method sometimes leads to paying extra in interest over time. Here’s my guide to deciding if the debt snowball is best for you. Some proven methods for paying off debt embrace debt snowball, debt avalanche, debt snowflake, automating funds, debt management plans and DIY debt reduction. The greatest debt reduction technique is dependent upon your monetary state of affairs, in addition to your consolation degree. This could be in the form of a personal loan or it could probably be a balance transfer to a new bank card.
If you’ve a objective to turn into debt-free this year, bank card debt is an effective place to start. High interest rates and minimum funds can maintain you in an countless cycle of debt. But there are some straightforward methods to interrupt that cycle and pay off bank card debt for good. First, you may find a way to lower your payments by consolidating with a loan or bank card that has a decrease interest rate than your present accounts. Credit card debt consolidation may additionally simplify the payment course of. By grouping your balances collectively, it could be easier to make one fee every month and monitor your progress as you pay down your debt.
Research others and combine strategies to search out one of the best fit on your goals. With balance transfer credit cards, you transfer your existing balances from high-interest playing cards to one new card with lower rates of interest, and extra favorable phrases. You might have the ability to receive an introductory 12- to 21-month zero-interest period. You can pay off your bank card debt with none interest throughout this time.
Once you discover an quantity you could comfortably put toward your debt every month, stick to it. Life occurs and there could additionally be instances when you’ll have to adjust this quantity. Credit card debt consolidation combines a quantity of credit card balances into one stability. This could make it simpler to keep monitor of since there is simply one month-to-month payment due. The handiest debt consolidation strategy is to switch your debts to a bank card with an intro 0% APR supply or a decrease APR than what you’re at present paying on your balances. This can help you pay down your debt faster and with much less curiosity.
You may find that some people will support your goals and cheer you on, whereas others shall be upset if you flip down invitations. However, you’ll by no means regret staying centered on bettering your finances. If you’ll have the ability to relate, begin shifting your focus and bringing extra awareness to your day by day spending. When you do this, take note of the occasions you ordered food, the price of your kids’ activities, and your current subscriptions. Look for locations you’ll be able to minimize for a time frame till you repay your debt. For instance, let’s say you might have federal student loans, personal student loans and a credit card.
When the introductory period is over, the curiosity price goes up considerably. You normally want good or wonderful credit score, with a score of 670 or more, to qualify. Should you begin with the debt that has the very best rate of interest, or motivate yourself by paying of the smallest chunk of debt first? The reply is decided by your circumstance, however we have the basics lined proper right here. If you’re not sure a mortgage or steadiness transfer card is a match for you, consider other methods to pay down your debt, such as the snowball or avalanche methodology.
By the end of 2024, complete family debt in the U.S. was $18.04 trillion, including $1.2 trillion in bank card balances. With all that debt, it’s no surprise that 7.18% of credit card accounts are in serious delinquency, which means funds are 90 days or extra behind. About half of bank card holders don’t pay off the steadiness every month, which implies curiosity accrues and it will get even tougher to catch up.
You can either negotiate with your credit card company to get them to just accept a revised fee plan or maybe even a debt settlement. Credit card debt consolidation includes combining multiple high-interest bank cards right into a single consolidation loan at a lower rate of interest. If you have good credit, you might qualify for a significantly decrease annual percentage rate compared to what you could be paying in your bank cards. This can help you save thousands of dollars in curiosity charges. This shows why credit card debt is such a burden in your budget.
And the day I walked on the market, walked out of the job and had quit, oh my God, it was the best day ever. They permit consumers to pay for main objects, emergencies, journey, on-line purchases, and on an everyday basis necessities when money move is limited. A credit score is totally different from a credit score report, which gives a common overview of your accounts, whether they are in good standing and your private information. If you personal your personal home, you may have enough equity to consolidate all your money owed into your mortgage.
If you’ve tried to finances before and it hasn’t worked, you’re not alone. The Federal Reserve Bank of New York reported that credit card balances increased by $45 billion as of the fourth quarter of 2024. One trick that may help you succeed is to view your budget as a spending plan quite than one thing that restricts your fun. Another debt payoff technique to be careful for is debt consolidation. The solely time I may recommend consolidating your debt is if you’ve received scholar loans—but even then, it’s not always the right choice. A balance transfer would possibly provide you with a lower rate of interest or even a lower month-to-month payment, but that also pumps the brakes in your motivation to pay off your debt.
Suppose your credit rating isn’t excessive sufficient to fulfill the factors for a 0% introductory fee on a stability transfer card. In that case, you should still qualify for a card with an introductory APR that’s lower than your present card’s fee, Harzog says. Another option is a debt-consolidation mortgage from a bank or credit score union with a fee lower than the rate you’re paying on your high-interest credit cards. Many stability switch cards supply a 0% APR for wherever from six to 21 months, supplying you with time to pay off your debt interest-free. When the promotion interval ends, you’ll be charged the common rate of interest on any remaining transferred balance. Review your bank card statements to learn more concerning the minimal payments required.
Not solely will it make Thanksgiving dinner extremely uncomfortable, nevertheless it also turns your loving uncle (or your friend) into a debt collector. No household needs that extra tension—especially across the dinner desk. And just so that you know—credit card debt doesn’t automatically go away when someone dies, which can make things even messier for the people you like. Here are some regularly asked questions on bank card debt consolidation. But in the end, the benefits of having a bank card prevailed, and he or she discovered to trust herself once more. Lana now has three playing cards — her first credit card, the Chase Slate steadiness switch card and a Chase journey rewards card.
When you only pay the minimal, paying off your debt takes many months or years. Ideally, you’re focusing on paying greater than the minimal on one credit card to pay that debt first. A debt consolidation mortgage allows you to mix a number of bank card balances right into a single mortgage, ideally with a lower interest rate.
The credit score utilization ratio is the proportion of your total available credit that’s presently being used. The utilization ratio is one of the elements used by credit score reporting companies to calculate your credit score rating. Pay off your debt and save on interest by paying greater than the minimal every month. The key is to make further payments consistently so you probably can repay your loan more quickly.
You have to attract a line in the sand and determine that you’re accomplished with debt. No extra swiping that credit card or taking out private loans for stuff you can’t pay cash for. Those habits have gotten you where you at the moment are, they usually won’t help you get out. If you want something totally different, you want to do something different. Another way to break the bank card debt cycle entails earning more money — a minimum of for some time. After all, bringing in additional cash provides you more wiggle room to keep up with common payments whereas paying down debt.
Mortgage and vehicle payments are at the high of most lists because they provide your shelter and transportation for getting to and out of your job. Finally, make changes to your debt repayment plan based mostly in your progress thus far. If you’ve been able to preserve the debt avalanche strategy of paying toward the highest-interest money owed, hold it up! Or if the debt snowball methodology for fast wins works higher on your psychology, lean into that. When you’re in debt payoff mode, you want to frequently evaluate and make adjustments to your budget and debt repayment plan.
Also, you may be charged a steadiness switch payment whenever you switch balances from different playing cards, and you can only switch balances up to the credit limit you’ve been supplied on the cardboard. If the amount of debt you may have is larger than the card’s limit, this fee strategy will not be the best choice for you. Also, even should you can switch your entire steadiness, it could have a unfavorable impact in your credit score scores if the quantity you owe is near your limit in your new steadiness switch card.
If you don’t pay the money again or die before it’s paid off, then the insurer will take out the amount owed plus curiosity. In other words, your family may have less life insurance coverage to assist them reside after you’re gone. That money is there to offer your liked ones with a monetary security net in case the worst happens. You don’t need to do anything that may weaken that security net.
By implementing these 9 tips to paying off credit card debt outlined above, you’ll be well-equipped to achieve monetary freedom sooner. Your budget ought to include methods to reduce back spending, corresponding to slicing back on nonessential items. Look for methods to save money so you can put extra toward debt compensation. Look for methods to lower your payments, such as switching to a cheaper cellular phone plan. Credit card debt can really feel like an awesome mountain, but with the proper strategies, you’ll have the ability to climb out of it. High interest rates can rapidly turn a small stability into a large one, making it crucial to tackle this debt head-on.
Think about consulting a personal finance coach or learning about completely different budgeting strategies. Find what works for you and make habits that may maintain you out of debt in the lengthy run earlier than you try to sort out a symptom of your larger spending problem. Yes, it is usually a good suggestion to repay the bank card with the highest interest rate first as this can save you probably the most money in the long run. Once that card is paid off, transfer on to the next one with the best interest rate. Start by itemizing your whole fixed expenses like rent or mortgage, utilities, and automobile payments. Then, record your variable bills, corresponding to groceries and leisure.
When you may have any more money, even $25 or $30, make a web-based payment somewhat than blowing that money on meaningless issues that you just won’t even keep in mind subsequent week. Once your creditor writes off a debt as a result of nonpayment, it limits the options you’ve for reduction. No matter what, in case your debts are current, you’ve choices for eliminating them rapidly without damaging your credit score. As soon as you feel like there’s hassle on the horizon, modify your technique. If you’re somebody who wants to reap the advantages of essentially each of these methods then the debt lasso methodology is the technique that you just want to follow.
A credit restrict determines the utmost amount you can charge to your credit card. It’s determined by a variety of components including your income, credit score, and cost historical past. Having a bigger credit score restrict means greater borrowing power, however just because you can spend extra on a credit card doesn’t mean that you want to. Debt.com’s Credit Card Survey discovered almost half (48%) of respondents with $10,000 to $30,000 in credit card debt say the common APR on their cards is 15-20%. According to the Federal Reserve Bank of New York, Americans collectively have $1.17 trillion in credit card debt. These figures are likely to increase as plastic continues to develop as the popular methodology for making purchases among U.S. customers.
The threat of this technique is that it typically involves closing your accounts, which can harm your credit. But it won’t do as a lot harm as bankruptcy if you don’t get things beneath control. The greatest approach to repay bank card debt rapidly is to increase your revenue to have further funds on your funds. Put those funds towards your debt payments whenever you get a bonus or a raise. Don’t wait because, with time, that new revenue level will begin to really feel normal and you’ll enhance your spending in different places to get pleasure from that newfound income.
With the EveryDollar budgeting app, you’ll discover extra margin every month so you possibly can repay debt faster. Consulting a credit score counselor is an effective move, even when it’s just that can assist you understand your options. A counselor might help you with the basics of finance, deal with collectors, assist you to create a finances and craft a cost plan.
One sign is that you’re having difficulty making minimal debt funds, or maybe you’ve started utilizing one bank card to pay off one other. Note that you’ll have a better probability of getting a decrease interest rate if you’re a long-time buyer with a history of making your funds on time. If that’s your case, whenever you call to barter your debt, mention how long you’ve been a customer and your history of well timed funds. You could additionally be shocked how typically these corporations are keen to lower their rates of interest to keep you as a customer.
Continue to make minimal funds on your debt so you’ll be able to pay for those expenses as they pop up and begin stockpiling money till the child comes. Once everyone comes home from the hospital healthy and joyful, restart your debt snowball. The finest approach to repay debt is the one that works for you and your monetary situation.
Once you’ve used our payoff calculator, there are some ways in which you can use the outcomes to inform your technique so that you pay your steadiness off faster and pay less in curiosity total. While a balance transfer is pretty easy, you’ll have to look out for a few issues before shifting your debt to a model new card. Bankruptcy is your only option for getting rid of debt with out paying. Before committing to submitting chapter, perceive your options and the consequences that include having a bankruptcy on your credit report.
Credit card consolidation loans are private loans used to pay off multiple credit card balances, combining them into a single monthly payment. This technique can simplify debt administration, especially if juggling multiple due dates and rates of interest feels overwhelming. The main benefit is that personal loans usually have decrease rates of interest than credit cards, which might scale back the entire curiosity paid over time and allow you to pay off debt faster. The key to managing bank cards successfully is understanding how billing cycles, interest, and payments work collectively. Paying your stability in full every month is the best way to keep away from curiosity and construct a great credit score score. While minimal funds are an option, they significantly enhance the total interest you pay and delay your debt reimbursement.
With the snowball method, you’ll put probably the most money towards the smallest debt and move on to the next steadiness as quickly as it is paid off. You may even see instant progress with this method, nevertheless it might take longer and may price you extra in curiosity. The minimum payment is “the smallest amount you are required to pay every month to keep your account in good standing,” says Kiernan. That is normally a fixed dollar amount, perhaps $25, or a small percentage, say, 2% of the total you owe.
There are two main ways to pay down bank card money owed — the snowball technique and the avalanche methodology — both of which begin with setting a budget. If you’ve by no means budgeted before, it’s fairly easy to do in only a few steps. The best way to pay off bank cards is to do it as rapidly as potential. That’s as a end result of the rates of interest bank cards carry cause your debt to extend over time.
A 2023 Experian consumer credit score examine reports Americans’ average bank card debt in 2023 was $6,501, a 10% leap from 2022. Like a debt consolidation loan, it may be engaging to wipe out your credit card debt suddenly by way of a home fairness loan. But, as you take in your month-to-month loan fee, take care to observe and limit any of your credit card bills to be certain that you do not build one other debt that you can’t repay.
Options corresponding to debt settlement, nonprofit credit counseling, or chapter may help scale back what you owe or supply a structured path to becoming debt-free. The excellent news is there are legal ways to reduce and even get rid of your bank card debt – including debt management plans, chapter, and in some cases, debt settlement. Whichever approach you choose, know that there are additionally drawbacks, starting from legal fees to credit score rating damage. Certain credit cards supply engaging signup bonuses corresponding to a low introductory price for balance transfers. If you have good credit score, you could qualify for a card providing stability transfers at 0% curiosity for 12 months or longer. Taking advantage of a balance transfer can buy you time to repay a high stability.
Or, if you’re feeling overwhelmed by the amount you owe, see Forbes Advisor’s information to debt relief. If you’re carrying debt in your credit card, you’re not alone. According to the New York Federal Reserve, Americans owe $1.21 trillion in revolving credit card debt as of the fourth quarter of 2024. In Debt.com’s newest Credit Card Survey, greater than half (57%) stated they got their first credit card when they had been between the ages of 18 and 24. When requested who launched them to their first bank card, the most common answer was “their parents” – with 1 in 3 (32%) of respondents choosing that answer.
Keep budgeting via the changes, and you’ll jump proper again into your debt snowball once you settle into your new regular. You are leaving Discover.com and coming into an internet site operated by a 3rd celebration. We are providing the hyperlink to this web site in your convenience, or because we now have a relationship with the third party. Discover, a division of Capital One, N.A., (Discover) does not present the services on the web site. Please review the relevant privacy and safety insurance policies and phrases and situations for the net site you may be visiting. For private advice regarding your monetary scenario, please consult with a monetary advisor.
If you make sufficient small adjustments, you’ll feel such as you got a raise! Just ensure you’re also intentional about putting your freed-up money toward paying off debt—not losing it on pointless purchases. A finances is like a toothbrush—everyone needs one, and with out it, issues get ratchet real quick. If you actually need that credit card debt gone, you need a plan for your cash. And in this case, you need as much of your money as possible going straight toward your debt. So, let’s talk about the most well-liked credit card payoff strategies—and whether or not they’ll really allow you to get out of debt.
Pay too much, and also you may not have enough to cover a shock expense. Aside from conventional debt relief choices, there are different methods to assume about when making an attempt to regain control of your credit card debt. You can negotiate together with your bank card firm or find a reputable nonprofit credit score counseling agency to guide you or negotiate in your behalf. Some for-profit corporations also provide debt settlement programs. Debt settlement is generally used as a last resort as a result of it’s typically solely an possibility after your account defaults.
The provided templates make it straightforward to begin tracking expenses and making your price range, however you can even design your own sheets if you’d favor. There is a yearly payment of $79, however you can get began with a 30-day free trial. Tiller offers you a way to step up your spreadsheet budgeting recreation by routinely connecting your monetary accounts to Google Sheets or Excel. That’s the place it’s essential to spend not on the issues which might be superficial or momentary do the steps of the debt lasso technique assist folks construct that life. And we thought properly we’re clearly not getting the ROI out of our spending that we ought to be getting we should have. We ought to be having a much better feeling of quality of life than we had been at the time.
The stability you carry from month to month on your bank card can have a serious impression in your credit score rating. In reality, your credit score utilization ratio, which is how a lot you presently owe compared to your total credit score limit, accounts for a couple of third of your score. A widespread suggestion is to try to keep your credit utilization ratio under 30%. For instance, in case your card’s line of credit is $5,000, you don’t need to owe more than $1,500 at any given time.
For any methodology you utilize, automating your payments lets you decide to a month-to-month budget for lowering your bank card debt. As you do, benefit from any capacity to rearrange your bank card cost dates to higher align with your paychecks. While you employ minimum payments to pay towards your whole other credit playing cards, you employ as much as you probably can from your out there finances to pay off your high-APR bank card. Another choice is to barter a cost plan with a set amount to pay every month. The first thing you’ll must do is to assess your credit card debt.
Many factors are used to find out your price, corresponding to your credit history, utility data and the term you select. However, the applications have a few disadvantages that could injury your credit score. Once you’ve got nailed down your alternatives to save, start on the lookout for additional methods to make extra cash on the aspect. Go through your storage closet of undesirable gadgets and used electronics and listing them for sale on apps like eBay, Mercari and Poshmark.
Our record of the best lower-interest private loans could also be helpful. Debt refinancing involves changing an current debt with a brand new mortgage that ideally has better terms—such as a lower rate of interest, decreased month-to-month payment, or a special repayment timeline. This technique is commonly used for credit cards, personal loans, auto loans, and even mortgages. To use this methodology, make the minimum monthly payments on each of your cards and put further funds toward your highest-interest card or card with the most important balance. For example, if you have $500 to pay down your credit card balances, put the majority towards the card with the very best stability or interest.
Try to stay motivated by rising your financial savings and dwelling frugally. Increasing your savings and establishing monetary stability ought to substitute spending unnecessarily and will help you stay out of debt. Get extra from a personalized relationship providing no everyday banking fees, priority service from a devoted staff and particular perks and benefits. Connect with a Chase Private Client Banker at your nearest Chase branch to find out about eligibility requirements and all available benefits. Make purchases along with your debit card, and financial institution from nearly wherever by telephone, tablet or laptop and more than 15,000 ATMs and 5,000 branches. So if you lose it, call the customer support quantity on the again of your card.
But in the long term, consolidation may benefit your credit score as you work towards paying off your debt. Lowering your general debt could decrease your credit utilization ratio, which may improve your scores with consistent on-time payments. The best method to consolidate your credit card debt will rely on your personal monetary situation. Factors that might affect the consolidation technique you choose embrace your total quantity of debt and which types of loans and terms you qualify for. If you need continued access to your credit card, ask for a decreased monthly payment or interest rate.