Anyone with credit cards can tell you how quickly and easily you’re able to accumulate debt by using them. If you must continue swiping your plastic, you should do so with knowledge and careful management, so that you don’t ruin your financial status. Many people who are fighting credit card debt can tell you it’s very difficult to get out of, so take the time now to learn how you can avoid it altogether. But if you’re already dealing with it, don’t fret. There are ways that you can pay it off and get back to financial freedom.
Pay Above the Minimum Amount Due
If you’re able to, you should try to pay as close to the debt amount as possible. Avoid paying the minimum amount due on credit cards because it will only accumulate more interest rates, sinking you deeper into debt. A lot of people have the habit of only paying the minimum and it is only making their financial situation worse, especially if they’re struggling to get out of debt. Few understand that this is how they got into credit card debt in the first place.
Only Charge Your Credit Card if You Can Pay it
This goes hand-in-hand with the last tip. If you are charging large amounts to your credit card and you’re unable to pay for it now or in the future, then you are on the road to deeper debt. Stop buying things that you can’t afford and begin paying off the older debts that you already owe.
Pay Off High Interest Rate Credit Cards First
It is important that you pay off your credit cards in the right order. Some people struggle with whether they should pay for high interest or high balance credit cards first. In fact, experts suggest that you pay for high interest credit cards first, because in the long run, you will accumulate more money owed if you put off the high interest rate credit card bills for too long. So you should start from the highest and end off with the lowest interest rate credit card.
Pay Your Credit Card Bills Often and Sooner
You shouldn’t wait around for your credit card bill to come in the mail. If you already know what you owe, begin paying for it right away. And you don’t have to only make one payment a month. If you can afford to, you should make multiple payments throughout the month to chip away at your credit card debt. A payday advance can be used to help with credit card payments as well.
Use Your Savings Account to Pay for Debt
If you have a large savings account and large amounts of debt, why not use your savings account to help you out? Although you are saving up for retirement or something specific, you should consider credit card debt to be an emergency. If you don’t tend to your credit card debts in a timely fashion, it will eat away at your financial stability. Before you know it, your credit rating will be to the floor and will be almost impossible to raise to a good or perfect score.
If all else fails, you can get professional financial help from a debt counselor, who can assist you with coming up with a plan to pay off your credit card debt. A debt counselor can also offer debt relief services like debt consolidation and debt settlement. Hopefully these options will work and it won’t come to that, but all’s well that ends well.
And once you pay off your debt, you may be able to afford that Bowflex machine you always wanted.