Make a Budget
Creating and following a budget is one of the best things you can do to get your credit card debt under control.
When you have a plan for your money, you’re less likely to overspend and rack up even more debt.
There are many different ways to create a budget, so find one that works for you and stick to it and track your spending for a month, so you have an accurate picture of where your money is going. Then make adjustments as needed.
Find Extra Money to Put Towards Your Debt
First, look at your budget and see where you can cut back. Can you brown-bag your lunch for a few weeks instead of eating out? Or cancel your Netflix subscription and stick to free streaming services?
Another option is to take on a part-time job or sell some of your belongings. Anything to bring in a little extra cash each month.
Snowball Your Debt Payments
There’s no need to feel overwhelmed by your credit card debt. Just follow these simple steps to help yourself: Stop using your credit cards.
This might seem an obvious step, but it’s one that many people don’t take. Listing your debts from the smallest to the largest, known as the snowball method, is a great way to get motivated and see results quickly.
Alternatively, snowball your debt payments. Start by paying the minimum on all of your debts except for the smallest one.
Asking for help when you’re struggling to get ahead is another way to help yourself. Chances are friends would be more than happy to lend a hand (and maybe even offer some words of encouragement along the way).
Attack Your Debt With the Highest Interest Rate First
The big deal is often the interest rate you’re paying on that debt. Chances are, your highest interest rate debt is also your largest debt.
Which means it’s costing you the most money in interest payments. That’s why it’s so important to attack that debt first in areas such as;
transferring your high-interest debt to a card with a lower interest rate, paying off your high-interest debt as quickly as possible, getting a loan to pay off your credit card debt and taking out a home equity line of credit to pay off your credit card debt.
Get a Balance Transfer Credit Card
One of the best things you can do is get a balance transfer credit card. This is a card that allows you to transfer the balance from your other credit cards onto one card, with a lower interest rate.
The downside is that you usually have to pay a fee for transferring the balance. But if you can afford to pay this fee, it’s worth it because it will save you a ton of money in the long run.
Consolidate Your Debt
This means combining all your balances into a single loan with a lower interest rate helping you get rid of the high-interest rates you’re currently paying and making it easier to manage your payments. It’ll also save you money in the long run, because you’ll be paying less interest overall.