You can get a jump start on paying off your credit card debt with these 5 ways to start paying off credit card debt.
So many Americans have credit card debt. It can be something that keeps you up at night and makes you feel financially overwhelmed. You eventually get to a point where you are tired of just paying interest each month and decide to tackle this debt. If that’s you, then here are some ways to start paying off credit card debt so you can get on with your life and start over fresh.
5 Ways to Start Paying Off Credit Card Debt
Start with the card with the lowest balance first – If you need serious motivation to pay off your credit cards, try paying off the ones with the lowest balance first. It may make sense to pay off the ones with the highest interest rate, but if you pay off the ones with the lowest balance first, you are able to see the fruits of doing so much sooner and this, in turn, gives you more motivation to keep working your way up.
Always make more than the minimum payment no matter what – If you have made a plan to pay off your cards with a certain amount of money per payment, make sure it is at least over the minimum amount and if possible, twice the amount you pay in interest each month. That way, you will make large dents in your cards and pay them off sooner.
Cut back on other expenses for a period of time to free up money to pay off your debt – What could you give up in order to pay just a little more to your card each month? Maybe cut your cable package to the minimum for a while, or consider taking public transportation to work to save gas. You could even do a spending freeze. These changes don’t have to be permanent; just long enough to get your cards paid down.
Ask if you can get on a debt relief program through your card – You may not even be aware but many cards have debt relief programs that allow cardholders to have a lower payment and interest rate for a time period. One that I have allows you to go from 22% interest to 6% interest for 6 months so you can make payments and get your card balance under control. This can be especially helpful if you are paying off other cards. It allows you to either make a smaller minimum payment or to get the card paid off with larger payments.
Consider taking out a personal loan to pay off your debt – This idea might sound like you are taking on more debt, but you may be able to get a personal loan at a much lower rate than any of your current credit cards offer. You could take out a loan to pay them all off in one lump sum and then make payments on that loan so it’s all in one place. Keep in mind, though, that this probably won’t make your credit score go up since your credit score is a balance of payments on time over time rather than one lump sum payment. It is a good way to consolidate, however, and does give you more convenience.