Is your credit card debt strangling you? You’re not alone. But don’t worry, there are some fairly painless steps you can take to reduce your credit card debt.
How to get out of credit card debt:
Stop charging your card- This is one the simplest task to understand, but it is the hardest task to put into practice. It really is the bottom line. Stop using your card! To avoid temptation, leave it at home or better yet, put it out of reach someplace safe, like your safety deposit box at the bank.
Start small- Pay off the easy debts first. The higher amounts are going to take time to pay off. By focusing on the smaller debts, you also improve your credit score. When you concentrate on improving your credit score, this opens up other alleys for you.
Close out brand new cards- There really is no need for another credit card if you are struggling to pay off the current one. By limiting yourself to one card, it is better for you to understand what your debts are.
Make “Snowflake” payments – While you may be tempted to stick to the tried and true rule of making payments out of allotted “bill paying money”, you may be surprised at how fast you can pay down your credit cards by making payments with any extra money you have. Did you earn an extra $100 this month by selling something on eBay? Is your spare coin jar at home full? Did Grandma send you $10.00 for your birthday? Take those little extras you earn each month and put them on your credit card.
Get another job – Yes, it may seem exhausting to even think about it, but if you can find a part-time job, even for a couple of days or evenings per week, you will have extra income to put directly on your credit card, while you can live off your main income. Even a paper route can help!
Be honest about your spending – Listen, credit cards are handy and are great in case of an emergency. But if you find yourself treating your card like “free money” and are charging your morning coffees on your card or that must-have-it outfit, when you really don’t need to, you are over your head. Get real. Get honest. Stop it.
Do not get complacent about your credit card debt. Many people feel that their debts will be taken care of in the end. It makes the credit card companies upset and they in return will lower your credit score. In America, your credit score is your lifeblood. If you have a low credit score, chances are that you will not be able to get a home, car, apartment, or (in some cases) a job.
If you are completely out of control and your credit card debt seems unmanageable, it may be time to talk to your bank about a low-interest consolidation loan.
