Most people have run themselves into a precarious financial situation by using their credit cards to supplement their income. With most households bearing the brunt of massive credit card debts that run into several thousand dollars and with no signs of respite from the economic turmoil, people are finding it increasingly hard to meet their monthly debt obligations.

Unfortunately, if you do not own a home, you will find it very hard to consolidate your high interest unsecured credit card debt into one secured, low interest loan. So, what can you do to stop the credit card companies from taking drastic measures to collect their debt from including wage garnishment? Here are some tips that will help you reach credit card debt relief even if you do not own a home.

Getting ready to get out of credit card debt

Find out more about your credit card debt: This is the first step in eliminating your unsecured debts, find out more about the principal that you owe and the monthly interest, penalties etc that you are being charged. You can simply go through your monthly credit card statement to get accurate information on this; alternatively, try talking to a representative of your credit card company.

Draw up a list of all the credit cards that you own: Most people who find themselves in credit card debt related trouble own at least 4 to 7 credit cards or more. You will need to jot down the name of each card with the amount you owe, the interest rate that they are charging you and the minimum payable amount each month. Now, you need to ensure that you always pay more than the minimum to reduce/avoid the hefty interest charges.

Talk to the credit card companies: If you feel that your current financial situation has put you in a compromising position where you cannot meet your monthly credit card debt payments; it is imperative to let your credit card company know about it. Avoiding those pesky debt collectors will not make your creditors go away.

As a matter fact, they may come after you lawyer and all, so it would be best to talk to a representative of the company and explain your problem to them. Be honest about your financial condition and also be ready to submit paper work which proves that you are facing financial adversities.

Some companies will be willing to offer reprieve by reducing or writing off the interest payments while others may even be willing to reduce some of the principal amount. It is a vital to have a clear understanding of what you want before you talk to the company and ask for help.

After all, the company will try to collect as much as they can from you, so you need to clearly tell them how much you CAN pay. Once, you have got yourself a solution; make sure that you make sure that you do not default on the new payment structure.

Raising money to get out of credit card debt

Raising money to pay off your debts can be a major encumbrance; after all, you will have to change your lifestyle; however, these simple measures can help you to significantly reduce your debt; here are some tips:

Make a budget: Use one of the budget making tools online or simply make a list of your necessary expenses on a piece of paper. This should not include anything besides the bare essentials such as food, medicine, some money for emergencies, utility bills, travel expenses and other debt payment such as car loans etc.

Stick to your budget: While making budget seldom takes more than a few minutes, sticking to it is a totally different ball game. You will have to wade your way through a million enticements as you shop to stick to your budget. However, come what may, you should not spend a dollar more than what you have written down on your budget sheet.

Shop sensibly: Clothes can be bought at surplus stores; they are cheap and look as good. When buying food do not go for the branded stuff; food items without a flashy brand name on them are equally good and taste the same; however, they are a lot cheaper. When shopping for groceries, make a list of things that you need and take it along. Do not go to any other aisle or check out any other products. Just get what you need and get out of the shop. This is a good way to stop yourself from buying unnecessary food items.

Limit your spending on entertainment such as movies, restaurants etc. Instead, try going out on a picnic or a walk in the park or renting a movie. Increase your income: Try to get a second job; you could also consider work at home online ventures. Alternatively, if you have a spouse who does not work; you ask him/her to try and find a job that will supplement the family’s income.

Gather money from other sources: If you own valuables such as jewelry, a second or third car, equity holdings, bonds, etc, this will be a good time to liquidate them. You can use all the money that you get to pay up your credit card debts.

Pay up

When working on your credit card debt elimination, you need to go for the snow ball effect. Divide the money that you have set aside for your debt payments into small parts. Start by paying the credit card company that is charging you the highest interest the most; try very hard to go over the minimum payable amount each month.

The second highest interest rate card gets the second highest amount and so on. Finally, move to the credit cards at the bottom of the list; here you can make do with the minimum payment. Eventually, this will help you to create a snow ball effect as you pay off your high interest credit cards faster.

Only keep two credit cards with you, one VISA and one Master; surrender all other cards. While you are paying your debts, try to not use any of the cards; do not get new cards either.

Some other options

If you find it difficult to negotiate with the credit card companies, you can enlist the help of a reputable credit card debt management establishment. They will be able to negotiate with your creditor on your behalf. However, do not fall for the lofty claims made by some nefarious establishments.

Being frugal in the future

If you have embraced a life of frugality, you may have discovered that it is the sensible thing to do and has many advantages. You do not have to curtail the amount of food on the table; however, the simple tips mentioned above can help you to eliminate your debt and save for a rainy day.

If you find it particularly difficult to stick to your budget and cannot get yourself to shop with in your means; here is how you can change your habits:

Go for debt counseling and debt management classes: These are courses which teach you to change your spending habits and reduce your reliance on credit.

What can and will happen if you do not pay up?

There can be serious repercussions to not paying your credit card debt and ignoring those debt collectors. To being with, it is simply not the right thing to do; after all your creditor gave you money when you needed it the most and when its time to pay up, you are turning your back on them, which is certainly not civil behavior.

However, do not expect these guys to take this lying down; they will come after you for their money and you will find yourself in a wad full of boiling water when they do. Not only can credit card companies take you to court and attach your moveable, immoveable assets but also they can garnish your wages at source.

This means that they will get a court order which tell your employer to deduct a part of your earnings (this can go above 40% of your earnings) and give it to them to pay off your debt. Unfortunately, because the judiciary is involved in the matter, your employer will have no option but to abide by the courts decision.

Not paying your credit card debt and even declaring bankruptcy will seriously damage your credit rating which can open up the proverbial Pandora’s Box on its own. So, it would be best to try and sort out the matter with your credit card company and pay up your unsecured debts as soon as possible.