Ah, the convenience of credit cards. Chances are that many of us have had a credit card or two at one point in our lives. I personally have had three and I will admit- while they were nice to have at the time, I regret ever opening them in the first place. Even with my small line of credit, usually the minimum, I still ran into problems. Which is why I want to talk about how to wipe out credit card debt. It took me a bit to get my credit card debt under control, but I’m thankful that it’s one thing that I’m not having to deal with too much.
But if you do run into this problem, don’t forget to check out my resources for how to wipe out debt as well.
One of the easiest ways to avoid running into credit card debt is to avoid them in the first place. Or, if you absolutely need to have a credit card? Try a pre-paid option or use your debit card that’s attached to your bank account.
Practical Tips for How to Wipe Out Credit Card Debt
1. Make a goal.
Before you begin reducing your debt, you need to know what your goals are. Set a date that you would like to be free of your credit card debt and work hard to achieve it. Plan a reward for yourself at the end of it all. Choose something that does not require money, or something you can pay for with your newly freed up extra cash, without your credit card.
You can also try setting up a get out of debt budget specifically targeted towards your credit card debts.
2. Put your goal down in writing.
Thinking of goals is great, but putting them down on paper is even better. Write down everything you have planned and put today’s date on it, then post it on a bulletin board or somewhere you can remind yourself of it on a regular basis.
3. Pick up a second job.
If you want to make bigger payments towards repaying your debt, consider getting a second job on evenings or weekends. This small step can help you repay your debt in a much quicker time frame.
4. Use all extra money towards repayment.
When you have extra cash, whether it is your income tax refund or something else… use it to pay your credit card debt. Many people make the mistake of using extra money to plan for fun. However, it is no fun to think about all the extra money you are accumulating in interest on your debt while you avoid paying it.
5. Stop using your credit cards.
It doesn’t matter how much of your debt you are paying off if you are still piling on more through spending. Take your credit card out of your wallet if you need to, in order to stop spending and accumulating debt in the first place.
6. Cut down on all extra spending.
Whether credit card or cash, just stop. Do not buy unnecessary items, and think twice, or even three times before every purchase.
7. Prioritize the payments of credit cards that have higher interest rates.
If you have more than one credit card you have outstanding debt on, prioritize the one with higher interest. This will cut down on interest paid, and free up your finances sooner.
8. Consider consolidating your credit card debts.
Take note of all possible penalties and fines, and then decide if consolidating your credit card debt may be the right move for you. This may involve moves such as transferring the balance of your debt to a credit card with a lower interest rate.
9. Negotiate your interest rates.
Some people are not even aware that this option exists. If you have been a responsible bank customer, they may agree to lower your rates. It is certainly worth the phone call to find out if it may be possible.
Great tips! Thanks for linking up with Share the Wealth Sunday. I’m going to share this post on my FB page and blog this week.