Tips You Can Use To Help Pay Off Credit Card Debt

Is credit card debt part of your life? If you are struggling with credit card debt, you are not alone. Millions of Americans suffer from spending what they don’t have by swiping plastic at the checkout. If you are looking to get out from under the stress and the debt of credit card bills here are some great tips to get you on your way.

Consider Consolidating

If you can, try to consolidate all of your credit card debts into one. Look around to see if you qualify for a low interest rate card. If you can qualify, transfer all of your credit card balances onto the one. This will help you save money in interest and make it easier to start paying down your debt. After you have made the transfers, stop using your other cards to prevent re-running up your balances.

Pay More Than The Minimum Balance

Always pay more than the minimum amount due. The more that you are able to put towards your credit card debt each month, the sooner you will be able to pay it off. Not to mention, the longer it takes you to pay, the more interest the credit card company collects from you.

Try The Snow Ball Method

If you cannot consolidate, or if you prefer, you can use the snowball method. This method is quite popular and works well for a lot of people. The concept is that you start with one credit card and put all of your extra funds towards that debt each month until it is paid off. You do this while you continue to pay just the minimum amount on your other cards each month. Once one card is paid off you move on to the next one, until you are debt free.

There are two ways to decide which card to start with first. Some suggest the card with the smallest balance because you will be able to pay that card off the quickest. Seeing quick progress can be motivating and keep you going. Others will suggest starting with the card that has the highest interest rates, so that you pay less in the long run. In reality, as long as you stick with the program, go on your preference and you will see your debt start to diminish.

Stop Using Credit Cards

Stop using plastic altogether. Cut up your cards and switch to cash. A sure way to sabotage paying off your credit card debt is to continue to rack it up higher and higher month after month.

Use a Budget And Stick To It

If you do not have a monthly budget, you will find it challenging to stay on track and pay off your debt. Take the time to set up a monthly budget and keep track of your income and expenses. Make sure your expenses do not surpass your income. If they do, cut them. Tweak your budget until you can find extra funds each month to help pay down your credit card debt.