5 Fast Ways to Help Eliminate Credit Card Debt
According to data from the U.S. Census Bureau and the Federal Reserve data, American households owe an average of $16,425 in credit card debt. So if you are struggling with credit card debt, you are not alone.
Fortunately, there are ways to start eliminating your credit card debt. Consider the following tips:
Pay more than the minimum payment
Paying a little extra towards your credit card balance each month will give you a better opportunity of speeding up the payoff process. If you start this practice with the highest rate card balance first, you save as well.
Ask for lower interest rates
Have you ever heard the phrase, “it never hurts to ask”? This works for this scenario. If you have a solid history of paying your account on time, then there is a good possibility you can have your interest rate lowered if your card issuer or bank has the option available. If not, consider transferring your cred card balances to a lower rate credit card account. Many may offer promotional balance transfers.
Pick up some extra income
If you’re serious about living a credit card debt free life, think about picking up a side job or seasonal job to bring in some extra cash. With doing this, you will be able to pay more than the minimum payments and it will give you a little cushion for other necessities. Think about what skills or assets you have that you may be able to put towards work.
Transfer your balances
Consolidate your credit card balances, if you have multiple. Doing so can help get a complete idea of your total debt and you may save with a lower interest rate. Although this is very helpful to some, make sure you carefully review the right option for you. Many balance transfer offers involves a balance transfer fee 3%-5% of balance transfers, which can quickly negate any savings.
Simply use your credit cards only for purchases you will pay off
It’s a simple concept, but reality is that this is a tricky thing to do. This is something that you work towards if you want to eventually be credit card debt free. Don’t spend more than you make, and try to live simply for a while until you get on the right track. Dave Ramsey says, “You must learn to live on less than you make. You cannot win until you do so.”
Also, check out our balance tracking fitness program – which is a helpful tool that we offer to get you on the right track!
Do you have any helpful advice you’d like to share for getting out of debt? Let us know below in the comments!