Top 7 Ways To Eliminate Credit Card Debt
Are you struggling to pay off your credit card debt? You’re not alone. In fact, you’re part of a growing trend. The average American household has $15,654 in credit card debt,according to NerdWallet’s 2017 Household Debt Study. If you’re ready to get out of debt, there are several strategies you can use to pay off your balances quickly and responsibly. Here are the seven best ways to eliminate credit card debt:
7 Best Ways To Eliminate Credit Card Debt (#1 is key!)
If you’re like most Americans, you’re probably carrying a balance on at least one credit card—and paying interest every month as a result. But it doesn’t have to be this way! There are several strategies you can use to pay off your balances quickly and responsibly. Here are the seven best ways to eliminate credit card debt:
1) Create a budget and stick to it:
This is probably the most important tip on the list. In order to get control of your finances, you need to understand where your money is going each month. Track your spending for 30 days so you can see where your money is really going—you may be surprised! Once you have a better understanding of your spending habits, you can create a budget that allows you to put more money towards paying off your debts each month.
2) Make more than the minimum payment each month:
Making only the minimum payment on your credit cards will keep you in debt for years (and cost you thousands of dollars in interest). If possible, try to make payments that are equal to 2-3% of your total balance each month. For example, if your balance is $1,000, aim for payments of $20-$30 per month until the balance is paid off completely.
3) Attack your highest-interest rate balance first:
Another strategy for paying off credit card debt is to focus on paying down the balance with the highest interest rate first while making minimum payments on all other accounts. Once that account is paid off, move on to paying down the next highest-interest rate balance—and so on until all of your debts are paid in full!
4) Get a 0% APR balance transfer credit card:
A great way to save money on interest charges is by transferring your high-interest balances to a 0% APR credit card—but beware, these offers usually only last for 6-21 months before reverting back to a much higher interest rate (usually around 15-25%). So it’s important that you have a plan in place for how you’ll pay off the entire balance before the intro period ends!
5) Use windfalls wisely:
Did you get a tax refund this year or receive a bonus at work? Great! You can put that extra money towards eliminating your credit card debts once and for all by making a lump sum payment towards the account with the highest interest rate.
6) Consolidate debts with a personal loan:
Transferring high-interest credit card debt to a personal loan with a lower interest rate can help save money on interest charges and streamline your monthly payments into one easy-to-manage bill—just be sure not rack up new debts on those empty credit card accounts!
7) Consider credit counseling or debt settlement (if all else fails):
If you’ve tried everything and still can’t seem get ahead of your debts, it may be time seek professional help from a nonprofit credit counseling agency or consider pursuing debt settlement through a reputable company like National Debt Relief. Just be sure do your research first so you can avoid getting scammed!
Conclusion:
As you can see, there are several options available if you’re looking for ways to eliminate credit card debt—it’s just matter of finding what works best for you and sticking with it! Remember, discipline and perseverance are key; if you stay focused and committed, you’ll be debt-free before you know it!
