When credit card debt has you down and you don’t know what to do next, it’s time to formulate a strategy.
Once you better understand your situation and the steps you can take, it’s much easier tackle credit card debt in a highly efficient and effective manner.
Here are five simple tips that anyone can follow:
- Make more than the minimum payment when possible. This isn’t always easy to do, especially if you have more than one credit card, but it’s a step you should definitely try to take. The more you pay the quicker your debt will disappear.
- Focus on the debt with the highest interest rate first. Do you have more than one credit card? If so, start by paying down the highest interest rate credit card. Once this one is off your plate, continue down the list.
- Opt for a balance transfer. With a balance transfer, you can move high interest debt to a credit card with a zero percent interest rate (for a specific period of time). As a result, you can pay down your debt without any concerns regarding interest charges.
- Negotiate with your credit card company. This doesn’t always work, but it’s an idea to consider. Reach out to your lender to discuss your debt and your options for eliminating it. If you can prove a hardship, for example, the lender may agree to accept less than the balance due if you are able to pay in one lump sum.
- Be patient. Unfortunately, it may take several months or even years to completely eliminate your credit card debt. When you exercise a high level of patience, you’ll eventually reach your goal.
When you follow these five simple tips for tackling credit card debt, it’s much easier to make progress and realize that you’re on the right path to success.
Have you eliminated credit card debt in the past? What steps did you follow? Share your thoughts – including what worked and what didn’t – in the comment section below.