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2 things to help you navigate your credit card debt

It's easy to find yourself in out-of-control credit-card debt. All it takes is the decision to put a fancy vacation on your card. If you come home, and then find yourself in the throes of a difficult and costly health condition, you may be tempted to charge your medical expenses on your card. Then, you'll really be in trouble.

If you're having a hard time with credit-card debt -- or if you simply own a credit card -- take a look at the following three tips. They might help you maintain a good credit standing:

1. It's often better to take out a short-term loan if you need to make a sizable purchase

High credit card interest rates will make it hard and slow to pay off your debt. If you're planning to make a purchase of several thousand dollars, you might want to get a short-term loan instead -- especially if you don't play to pay off the purchase for a year or more. A short-term loan will have lower interest rates and it could save you several hundred dollars in the long run.

2. Having debt on your credit cards could hurt your credit rating

In some ways, it's good to have some debt on your cards as your credit report will reflect that you are good at maintaining a healthy amount of debt and paying your bills on time. However, when your credit-card debt exceeds 30 percent of your debt limitations, you will be hurting your overall credit score. This could make it hard for you to get a car or home loan, so you might want to do your best to keep your credit card debt levels at a minimum.

What if you can't pay down your credit card debt?

If you're stuck in a debt spiral and you don't know how you're going to pay down your debt, you might want to explore various debt resolution options. Bankruptcy, for example, helps thousands of people every year to become credit-card debt free.

Source: creditcards.com, "8 things you must know about credit card debt," Erica Sandburg, accessed June 15, 2018

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