When you find yourself overburdened with debt, especially unsecured credit card debt, it can feel like you are drowning. You can find yourself in the position of only being able to afford to pay the minimum payment on your credit card. Before you know it, you have reached the maximum line of credit on that card, and you apply for another credit card. Once you are approved and receive that credit card with its own credit limit, you may feel like you have been given a lifeline.
If you continue the same irresponsible behavior as before, you continue charging purchases and expenses to the new credit card. It can be an endless spiral from this point on. Eventually, you recognize your problem and start looking for solutions. One ideal solution is consolidation loans Louisiana.
Ideally, with a consolidation loan with a lower interest rate than you had on your credit cards, you can pay off all your credit card balances. Since you are no longer paying interest on that debt, you can take the money you had to pay out as interest and apply that money to your loan payment on your consolidation loan. If you are really smart, you close those credit card accounts until you are completely out of debt. At that point, and if you have learned your lesson, you can reapply for a credit card for convenience but pay off your entire balance at the end of each month.
There are also other possible solutions and strategies. One strategy is to arrange your debt on a spreadsheet with the lowest balance owed to the left, the next highest balance owed to the right, and continue if necessary. Then, at the end of each month, pay only the minimum payment on the higher balance accounts and pay as much as you can afford on the lowest balance card on the left.
Once that account has been paid off, move to the next lowest balance account and continue the same strategy until all the accounts have been paid off. Eventually, you will be debt-free and hopefully have learned a critical financial lesson.