Tips to pay off your credit card debt
To date, I still have to meet a person who does not want to pay his/her credit card debt. Debt is burdensome, it’s a drain on the finances, and the most depressing part is the economy is such that everyone is saddled with debt. The most common type of debt comes in the form of credit cards, readily available, and the payment of literally everything focuses on its credit card payment.
No one wants to be saddled by debt, so here are some awesome tips to help you get out of it.
1. Spend Less
First step of reducing debt- spend less. This has two-fold advantages. If you are heavily dependent on credit cards, you reduce the debt amount you have on them. By spending less, you use your credit cards less, so you incur less debt. Second, is that all the money you save from spending less, you can utilize to pay the debt. So, the next question is how do you spend less?
– Best way is to have a budget to control your spending and increase your income.
– Find a way to reduce your grocery shopping like using discounts and avoiding things you don’t need.
– Buy used, instead of new. Whether you are buying a new car, or an electronic item, consider buying a used one.
2. Pay More than the Minimum
Strive to pay more than the minimum amount. Over time, all credit card debts double, and triple, their amount thanks to their interest rates. So, you need to pay it off as quickly as possible. You can’t do that if you stick to the minimum amount. Use your budget to squeeze out however much money you can. Whatever little bit you can save, do so! Utilize spare money like your bonus.
3. Make More Income
If you are financially strained and can’t find any money to pay the debt, you need to make more income. To do this, you either get a promotion with higher salary, or you get a second job. When it comes to a second job, you can go out and get a second job, or become a freelancer. Freelancer jobs definitely offer more flexibility.
4. Reduce your Credit Cards
It’s best to have a maximum of only two credit cards; one for your daily use, another as a backup for emergency uses. The rest, you need to throw away and stop using them. Rather than build up more credit on them, focus on paying them off.
4. Consolidate the Debts
When you find yourself juggling with too many debts, from too many lenders, you can consolidate them. Consolidation allows you to pay for all for all your debts, by borrowing from a lender. Preferably, you pay your debts from the debt account that has the least interest.
Paying of credit card debts is not rocket science, so don’t let the complexity muddy things. Put your mind to it, and you can do it. Lastly, if you are still having trouble getting rid of credit card debt, get in touch with a professional debt consultant and figure how to eliminate it altogether.