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Every year more and more people find themselves drowning in a pool of credit card debt. While it is comforting to some degree that you are most definitely not alone in this situation, most people would also prefer to eliminate unsecured credit card debt all together.
While it can seem almost impossible to pay down credit card debt once you have attained it, the good news is that there are many different ways in which you can legally and honorably pay off your credit card debt and enjoy the liberating feeling of being debt free.
First, it is important to understand that you absolutely must have a plan for paying off your credit card debt and also the ability to stick to it. Simply exhausting yourself trying to make it to the next paycheck and paying the minimums will get you nowhere, and be the source of endless stress, anxiety and worry.
You must put pen to paper and develop a plan for eliminating your credit card debts. The first step you must take in developing such a plan is to analyze your existing budget (you DO have a budget, right?) to determine where you can free additional funds to pay down your debts. Take a hearty look at luxury items such as cable and gym memberships that you can do without and use those funds to pay down your credit cards and other outstanding debts. Consider options like packing your lunch at home instead of eating out, cutting down on the number of coffees you purchase each week, etc. Once you start thinking about it, you may be surprised at the amount of money you can come up with to put toward paying down your credit card debt.
Secondly, it is imperative to understand you will never get rid of debt by paying only the monthly minimum payments.
At that rate, you’ll be lucky if you get rid of credit card debt by the time you retire. You must take aggressive action and start at least doubling your monthly payments in order to make a dent in your debt.
If you have more than one credit card, take a look at which accounts have the highest interest rates. The card or cards with the highest interest rates should receive immediate attention. In the event that you can’t afford to pay more than the minimum amount on all of your accounts, focus on the card(s) with the highest interest rate first. Once those are paid off you can take that money and apply it to the other cards. Eventually you will slowly but surely pay them off.
It is also helpful to look at ways in which you can reduce interest rates on your cards. One way to achieve this is to simply call up your credit card companies and request a lower rate. Of course, they don’t have to grant the lower rate to you but if you point out that you’ll take your business elsewhere if they don’t, they might quickly change their minds. Transferring balances to a lower interest rate or zero percent card can also be helpful as long as you close the original account so you are not tempted to accumulate more debt.
By following these strategies and remaining dedicated to paying off your credit card debts, you’ll have you’re debt eliminated before you know it.
Just remember that while it may seem as though this is a never ending process and you may be tempted to quit, following these strategies will help you eliminate your debt far sooner than just letting things go the wayside.
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