5 Ways to Eliminate Credit Card Debt

5 Ways to Eliminate Credit Card Debt

According to data from the U.S. Census Bureau and the Federal Reserve data, American households owe an average of $16,425 in credit card debt. So if you are struggling with credit card debt, you are not alone.

Fortunately, there are ways to start eliminating your credit card debt. Consider the following tips:

 

number one in blue box Pay More Than the Minimum Payment

Paying a little extra towards your credit card balance each month will give you a better opportunity of speeding up the payoff process. If you start this practice with the highest rate card balance first, you save as well.

 

number two in blue box  Ask for Lower Interest Rates

Have you ever heard the phrase, “it never hurts to ask”? This works for this scenario. If you have a solid history of paying your account on time, then there is a good possibility you can have your interest rate lowered if your card issuer or bank has the option available. If not, consider transferring your cred card balances to a lower rate credit card account. Many may offer promotional balance transfers.

 

number three in blue box  Pick Up Extra Income

If you’re serious about living a credit card debt free life, think about picking up a side job or seasonal job to bring in some extra cash. With doing this, you will be able to pay more than the minimum payments and it will give you a little cushion for other necessities. Think about what skills or assets you have that you may be able to put towards work.  

 

number four in blue box  Transfer Your Balances

Consolidate your credit card balances, if you have multiple. Doing so can help get a complete idea of your total debt and you may save with a lower interest rate. Although this is very helpful to some, make sure you carefully review the right option for you. Many balance transfer offers involves a balance transfer fee 3%-5% of balance transfers, which can quickly negate any savings.

 

number five in blue box  Use Credit Cards Only for Purchases You Will Pay Off

It’s a simple concept, but reality is that this is a tricky thing to do. This is something that you work towards if you want to eventually be credit card debt free. Don’t spend more than you make, and try to live simply for a while until you get on the right track. Dave Ramsey says, “You must learn to live on less than you make. You cannot win until you do so.” 

 

If you’re struggling with debt options or you’re just look for some advising, the Credit Union offers some great options; Stop by or call one of our locations!

And check out our balance tracking fitness program – which is a helpful tool that we offer to get you on the right track!

 

View our original post from our How Do You CU blog.


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