Pay Off Credit Card Debt Quickly
With These 6 Money Saving Steps
These steps to pay off credit card debt can be used to take up the slack when income falls a bit short. This can relieve money worries temporarily, but it creates a whole new set of problems. Calls from harassing creditors can be the least of it.
When you get into credit card debt, the best idea is to start digging your way out as soon as humanly possible. Easier said than done, yes – but there are ways to move toward it.
Stop Using the Cards
This is an obvious idea, but for many people, it’s difficult to put the cards down and step away. Take them out of your purse or wallet completely. If you don’t think you can resist using them, put them in a plastic bowl, fill it with water, and set it in your freezer.
This can discourage you from using them simply by making you wait for it to defrost before use. If you need a card number for online purchases that are absolutely necessary, use a debit card. By putting the risk of draining your checking account on the surface of your mind, this will keep you from spending thousands without much thought.
Go Low to High
When you are begin to pay off credit card debt, with those with the lowest balance first. By paying off low balances quickly, you can inspire yourself to keep going up the debt chain.
Increase Your Payments
Stop paying only the monthly required minimum payments. This just means it will take you longer to get the balance paid off, and the longer it takes to pay off, the more interest that gets attached to the balance. Cut out one of your monthly luxuries, such as eating out twice a week or going to the theater. By increasing your payments by just 50 or 100 dollars, you will actually be saving yourself money in the long run.
Send in Micropayments
Don’t just pay when you have a large payment. Any time you get a little extra money, send it directly to your credit card company. Ten dollars here and twenty dollars there doesn’t seem like much when it comes to pay off credit card debt in the thousands, but it will add up. You’ll have the balance down by hundreds before you know it. Sure, you could put this money in the bank and use it to make a larger lump payment, but what are the chances it will still be there when the time comes? If you just put the money into your bank account for later, it is more likely to be spent on other things because it is such a small amount.
Transfer Your Balance
You can transfer the balance of a high interest credit card to a low interest card. This will save you hundreds or perhaps thousands of dollars on a card with a high balance and high interest, enabling you to make a bigger dent in the debt because you aren’t paying off mostly interest every month.
Create a Budget
By putting yourself or your entire family on a budget, you can better control your spending and avoid increasing your debt further or getting into debt again after you finally get it paid off. Create set amounts for groceries, utilities, fuel, clothing, etc. If you are able to see exactly where your money is going and cut yourself off after a certain amount under each heading, you will be less likely to splurge on a hundred dollars for this or fifty for that.
My name is Rhett Pierson and I blog about how to pay off credit card debt and credit card bankruptcy.
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