Top Tips For Paying Off Credit Card Debt

tips for paying off credit card debts

Credit card debt can be crippling and lead to problems such as creditor calls, civil lawsuits, and wage garnishments. Uncontrolled credit card debt can make your life miserable, but there are ways to get rid of the debt without going bankrupt.

It may seem daunting, but these tips for paying off credit card debt can alleviate the stress and let you get life back on track. You’re not alone. There are thousands of people throughout the United States that deal with mounting credit card debt.

It doesn’t matter how it happened. It just needs resolving so you can once again feel peace about your finances.

Tips for Paying Off Credit Card Debt Include Paying Lowest Balance First

The average credit card debt is more than $6,000. When paying credit cards, it often feels like one step forward and two steps back.

High-interest rates can make your payment seem like almost nothing. By paying off the lowest balance cards first you’re not getting hit with tons of interest.

You’ll feel good because you can see how you’re making a dent in the balance. You’ll also quickly pay off a credit card and eliminate the phone calls and letters.

Consolidate Debt Into One Loan

For many people, the problem may not be high amounts of debt on a single card, but moderate debt on several cards. It’s difficult to get a handle because you’re payments are spread thin between the cards at different times of the month and multiple high-interest rates make it difficult to make a dent.

Consolidating all your credit card debt through a loan can make it more manageable. The loan pays off the multiple cards, so the phone calls and letters stop. You make one payment each month with likely a lower interest rate.

Some quick options stop your multiple credit card debt in its tracks and lets you get on a regular schedule.

Talk to Your Creditors

When you get behind, the credit card company calls often to find out what’s going on and to help you get back on track. It’s tempting to ignore the calls, but the problem won’t go away. If you ignore them too long, then it gets transferred to a collection agency and their tactics are more aggressive.

If you talk with the credit card companies, they’ll often work with you to develop a payment plan. Collection agencies work with you as well, but it’s best if you don’t have to deal with them.

Pay More Than the Minimum Payment

Every credit card has a minimum monthly payment that keeps current. If you make this payment, then you won’t get the annoying phone calls and letters, but it also won’t pay down your debt. You’ll be hit with monthly interest as well as adding more debt through credit card use.

You may be current in the eyes of the credit card company, but the debt continues to mount. Instead, pay more than minimum and your debt shrinks. If you can’t pay more than the minimum for all the cards, pick one and start there. “Find a debt payoff plan that works for you such as Snowball Debt Payoff, Avalanche Debt Payoff or Savvy Debt Payoff. This can keep you on a plan and expedite your debt payoff planning”, states Ben Tejes of Ascend Finance.

Develop a Monthly Budget

Many people don’t think they can reduce their credit debt because they don’t make enough money. The debt keeps growing because they keep using credit cards when the month runs out. By creating a monthly, budget you can see where your money goes.

You’ll be surprised where you can trim such as Starbucks coffees, eating out, etc. By tightening the belt, you can put more money into your credit card debt.

Don’t Wait to Reduce Your Debt

You may think you have all the time in the world, but one emergency where you slip on payments can snowball into a financial disaster. These tips for paying off credit card debt help you take control of your finances.

If you want to learn more about credit card debt options, then please explore the Frugal Finances and Loans sections of our site.

New Frugal Finance Blog Posts & Articles