Stuck in the Cycle of Credit Card Debt
If you’re facing the stresses and pressures that come from mounting debt on your American Express (AmEx) card(s), you’re not alone. You’re probably worrying about how you can pay off the balance(s) while also tackling the rising interest charges. Being faced with these serious issues can make you feel as though you’re stuck in an endless repayment cycle that just keeps going and going. But this doesn’t have to be the case, and there are options to help you take charge of your finances and get out of debt for good.
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Going through the process of debt consolidation is one of the best options out there if you are dealing with increasing American Express credit card debt. When you consolidate your debt this way, you will then receive only one monthly bill covering all of your remaining debt. Your monthly payments will also be lowered, allowing you more access to cash and funds. With the increased availability of funds, you will then also be able to use that extra money to pay down the principal on your debt or apply it to other important needs you may have.
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If you’ve decided to consolidate your debt, when you transfer the balances you have on any Visa, MasterCard, or Discover credit cards to an American Express card, you will not accrue any interest on those balances. This is because the AmEx card offers a six-month grace period free from interest upon opening. It’s important to remember, however, that the interest will go up as soon as the grace period on the card is over. As such, the amount of debt will decrease more slowly. Overall, though, taking steps to consolidate your debt in this manner will help you tackle your financial burdens in a positive and effective way.
Renegotiating your American Express Bills
When you’re overwhelmed with credit card debt, one option to consider is negotiating with your creditors regarding what you owe. This “debt negotiation” or “debt settlement” involves meeting with your creditors and agreeing to settle what debt you have for less than its face value. While this may seem like the most desirable solution, there are a few drawbacks to consider. When your debt renegotiation is accepted, the creditors may report this to the credit bureaus, which will in turn significantly damage your credit scores. However, if you already have a poor credit score, this may be the way to go to help you on the road to getting out of debt.
Facts to Know About American Express
- When you open an AmEx credit card, your charges will be free from interest for a six-month period of time.
- With the American Express Membership Rewards Program, you earn one point for every dollar you spend using the Green Business Dollar or Platinum Dollar Card. Accumulated points can be redeemed for a wide range of reward gifts, including flights, hotel stays, and car rentals.
- The AmEx Centurion (or “black”) card is available by invitation only from the company. Holders of this card receive unique benefits and services upon reaching this card level.