Do you have that Sword of Damocles hanging over your head, also known as the credit card debt? It doesn’t go away just because you want it to. It takes some work, but you can remove some of the stings of a credit card in your life.
Consider these steps to reduce your debts today:
- Always pay more than the minimum. Credit card companies love the idea of a minimum payment. It distracts you from having to focus on the large amount of the total and makes it look easy to pay off. The reality is that a minimum payment would take years to complete the total debt, and you’d end up paying way more than the principle. Aim for a specific amount each month, such as double the minimum as a start. You’ll actually be paying off your debt, rather than just extending your time in it.
- Consider your savings. While you have debt, saving for the future isn’t going to be as effective if you’re not aggressively attacking the debt.
Tip: If the interest rate on your credit card is 18%, and the interest on your savings account is say 4%, you’ll actually be way ahead in the long run if you put that money towards your credit card.
- Find a lower interest card. There are just too many options on the market today for credit cards. The best way to find a better credit card rate is to walk outside your door, hold out your hands and the mailman will put today’s deliveries of credit card offers in your waiting palms. Finding cards that offer introductory low-interest rates or generally lower interest rates could save you hundreds in the time you’re taking to pay it off.
Tip: You may consider calling your credit card company and telling them that you’re looking to move your balance to a lower-rate card; they might just reduce your interest and save you the trouble!
- Home equity can help. If you own a home, the equity in your home is a great asset for paying off debts.Caution: Ensure the payments will be manageable for your situation. The problem with home equity loans is that they can add up quickly. See to it that your repayments can be met and that you’re not just simply shuffling the debt around.
The best thing we can learn from history is that we can learn from history. When (not if) you pay off your cards, don’t do it again. Learn from your mistakes, and let it be a reminder never to do it again. Cut up those cards and leave this nonsense behind you.
Don’t put off what you can start today. Imagine how much better you’ll feel when that credit card statement arrives in the mail, and the balance owed reads $0.00! Yeah!
Thanks for reading, have a great weekend and do remember to share this article. It just might help somebody!