Today we have a guest post from Phil, Enjoy
Though it is a new year, there is nothing new about your finances unless you have won a lottery recently. Your financial situation is the same as it was at the end of the last year.
If your money is in great distress, it’s high time you should pay attention to it. Don’t spend this whole year in a monetary mess. Instead, try to find out ways by which you can calm down your finances.
Being said about a monetary mess, the most common of it is a credit card debt, experienced by all at least once in their lifetime. Credit card debt is one of the worst things that can happen to your finances.
But, don’t worry, if you are experiencing credit card debt at this moment, then you’re at the right place.
Let us discuss 10 good old ways by which you can get rid of your credit card debt.
1. Find out how much you owe
Sit with all your credit card statements and calculate the outstanding amount that you have to pay to your creditors. Find a reputable company to check your credit scores, if you need to know where you stand. Also, count the annual percentage rate (APR) on each of your credit card account. Don’t let the outstanding balance surprise you at the last minute.
2. Know your income
Before paying your debts, know how much you earn in a month. Count your income. Include all the income sources. Find out how much money is available per month.
3. Calculate your monthly household expenses
You can’t use all your income toward paying off your debt. Right? So, add up all your monthly household expenses and count how much money you need to satisfy them. Keep some extra cash for emergencies or purchasing clothes.
4. Check how much you can afford to pay
After meeting all your essential expenses, find out how much money is left to you. Use this money to pay off your credit card debt. If you’re having difficulty in calculating the amount you need to pay off your credit card debt, take help of online calculators and tools.
5. Pay off one debt at a time
If you carry balance on multiple credit cards, focus on paying off one debt at a time. But, pay the minimum balance on each credit card. Choose your target credit card based on the below two points:
- Start paying off the highest interest rate credit card first, or
- Start paying off the credit card with the lowest interest rate.
6. Always pay more than the minimum
If you continue paying only the minimum amount on your credit cards, it’d take a longer time to get rid of your debts. Plus, you have to pay less on interests if you pay more than the minimum on all your cards.
Whenever you pay more than the minimum, the extra amount will go toward paying the balance. Hence, you don’t have to make great efforts to pay off the lowest credit card debt.
7. Consolidate and negotiate your debt
Go for credit card consolidation to pay off your credit card debts easily. It’ll make your monthly payments more manageable. Also, contact your creditors and negotiate lower interest rates or ask them to transfer your credit card balance to a less expensive credit card.
8. Avoid incurring more debt
Since you have decided to pay off your debt, don’t waste time relaxing. Start now. Avoid opening multiple credit accounts as a remedy to your financial problems. You’ll end up with more unmanageable debts.
Moreover, if you open too many credit accounts within a short span of time, it’ll hurt your credit score. So, think twice before taking a step forward.
9. Make adjustment in your budget
When you have a mountain of debt, your first priority should be to get rid of it. Look for areas where you can cut down costs. Use the freed money to repay your credit card debt.
10. Go for credit counseling services
Seek credit counseling if you’re finding it hard to come out of the financial clutter. Credit counseling will help you deal with creditor harassment and manage your debts effortlessly.
Getting rid of credit card debt is not a herculean task. All you need is some planning and the determination that you can do it.
Author Bio –Phil Bradford is a financial web enthusiast. He is a regular contributor to debtconsolidationcare.com. He has expert knowledge about personal finance issues. His passion for helping people who’re stuck in financial problems has earned him recognition and honor in the industry. Besides writing financial articles, he loves to travel and cook.
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