Credit card debt is tough. It can hold you back from reaching your financial goals. Purchases made through credit cards from months ago haunt you and keep you from what you want with your monthly incomes. But proper planning and wise use of available tools and financial tips can help you get out of the situation.
Here we have listed some time-tested and proven methods to get out of credit card debt and make the current month’s income help you chase financial goals.
Create a budget plan
You cannot turn your money related goals into reality without having a realistic budget plan. A budget gives you full control over your money and tracks monthly spending. As a result, you can create a better plan to pay off your credit card debt as faster as possible. You can find several online tools and budgeting solutions like Mint to set up a budget plan. Creating a budget is not enough, but you need to stick with that if you really want to make your money work for you to help eliminate debts.
Stop using your credit card
If there is a huge wall of credit card debt and you want to get out of it quickly, stop using your card right now. Instead of saying good bye, tell your card ‘See you later’. When you stop making payments via credit card, it wouldn’t add further figures to your current balance. As a result, you will be better able to pay the current balance off as soon as possible. Start using your credit card or cash to make important day to day payments and buy other necessary things.
Balance transfer offer
Transferring your balance from one of your cards to another one is the most effective way to get out of credit card debt faster even without paying an extra penny. Balance transfer offers can help you pay off debt faster by transferring a balance from a higher interest card to a card with a 0% annual percentage rate (APR). In this way, you will just pay the balance amount, not interest. One thing you need to consider is that the payment grace period usually lasts from 6 to 18 months. And you must pay the balance before the grace period ends, in order to avoid higher interest rates. If you fail to pay off the transferred balance before the due date, it will end up with higher credit card interest rates to build more debt. So, make sure you are aware of all the terms and conditions of your balance transfer credit card to get out of debt faster.
Sort your priorities and drop some expenses
When you are in a huge credit card debt, it is time to be fundamental. Have a look at your budget plan and monthly spending to set priorities and see what you can quit to save extra bucks every month. There are things you can avoid to grow your savings account and pay off debt faster. Outdoor dinners, entertainment subscriptions, and regular trips to the coffee shop are some of the things you can avoid temporarily to spare some money for credit card bill payments. We don’t ask you to say Good bye, but you can go with ‘see you later’ approach to cut some of your monthly expenses.
Don’t be afraid to seek help
Are you still confused and feeling overwhelmed? If yes, then you must seek help from experts. Credit card counselors are professionals who can point you in the right direction. They understand your current financial situation and provide you with the best solutions or suggestions to improve your financial health so you can gain control over your money again. Don’t be afraid to seek help if you really want to get out of credit card debt. However, you should find a reliable and trustworthy credit counseling agency to confidently share your confidential and financial details with them to obtain financial assistance.