How to Eliminate Credit Card Debt in Texas
- 1). Pull a recent and valid copy of your credit report from www.annualcreditreport.com. This is a federally-mandated site that offers free credit reports from all three credit bureaus--TransUnion, Experian, and Equifax. This will give you a snapshot of your debt picture. It will also tally your total outstanding debt.
- 2). Look carefully at each credit card statement for the interest rate you are paying. Contact each lender if the rate is not printed on your statement. It is illegal to charge more than 18 percent on credit cards, and this is usually limited to delinquent accounts. Contact the state Attorney General if your lender isn't in compliance.
- 3). Review at least one month of bank statements. Look for areas to cut back on spending. These often include entertainment, eating out, and traveling expenses. Keep this money in a separate account. This will be your additional payment cash for credit cards.
- 4). Look for unauthorized activity on any credit cards. In Texas, you are not liable for any unauthorized charges made to your account after you notify the company. Similarly, you are only liable for $50 worth of charges made before you notified your lender. These charges must be removed.
- 5). Focus on the highest interest credit card first. Make minimum payments on all other cards. Use the additional funds you saved in your separate account. This will help you reduce the principal balance faster. Repeat this process once the highest interest card is paid in full.
- 6). Ask all lenders for a lower interest rate. There is no harm in asking and you may be successful. Lower rates means lower payments. This will speed up a debt repayment process.
