If you are having trouble getting your credit card balances under control, then maybe it is the best moment to start thinking about changing your strategy to reduce and pay off your credit card debt. Let’s be honest: if you don’t have right now enough money to pay off the debt, at the end you will be seeking for money every month, and the debt will get higher and higher. And as you may know, a large credit card balance can be a really big trouble for your economy. So, let’s start thinking about how to pay off your credit card debt.
How to pay off credit card debt
First of all, avoid using more credit cards. If you keep using your credit cards every month, the only thing you will manage to get is more debt to pay at the end of the month. And maybe you are still not aware of it, but if you accumulate too much credit card debt, it will take several years and lots, lots of sacrifices to pay it off.
So yes, the first thing you must do is to avoid getting more credit debt… at least until you find a new credit card account that could help you to pay off the debt monthly. But, if you want to use this method (even if you are thinking about getting a loan to pay off credit card debt), then you must have in mind things like:
- First of all, before you take out another loan (or another credit card), try to find (at treat) the cause of the debt. It is maybe your lifestyle what is making you spend too much money? If that is your case, then firstly make the financial changes you need before asking for more money.
- Now that you have solved the root of the problem, it’s time to move on and get the personal loan.
- Before you start looking for a personal lender, firstly ask your own bank to see if you can get a personal loan that way: for sure they can loan you the money with a low interest rate, which will mean that, unless you make more mistakes, you will get to pay off the debt without getting in more troubles. If you get a loan with high interest rates, you are exposed to get in bankruptcy at some time.
But getting more debt it’s not the only way to pay off your credit card balance. There is no fast way to pay off the debt, and the higher is the amount of money that you owe, more time will it take to clean the debt. With that in mind, you can use a disciplined plan to regain financial control in your life: first of all, be honest with yourself, and track all your monthly expenses to find things where you can save some money at the end of the month, and that is the money you will use to pay off the credit card debt. Even if it is just a meal, the gym or the cable, you can save a lot of money if you cut that expenses and use that money to pay off the debt.
Credit card interest rates are frequently really high
Until you have paid off the debt, you must avoid late payments at any cost. You will not only lose you credit score, which will mean that you will get no loan at all the next time you are looking for money, but even more important is that you will get charged for more interest rates the time you don’t get to pay your monthly debt. Take that in mind.
And then we get into the next point: track your progress. Maybe you are not aware of it, but just saving a few dollars every day, you are making a big progress to pay off your credit card debt. And the best way to be aware of it is using a personal “financial-book”, which can be a simple notebook where you write down every week the amount of money you are saving and dedicating to pay off the debt. If you check that progress after a few months, you will realize how much have you improved your economy.
Of course, never forget to negotiate with your bank to try to get better credit card terms. This advice will only work once you have paid off the debt, but be aware of it as soon as possible, because it’s the best way to avoid getting in debt again. The next time you start using your credit card, check the rate of the interest, and do your own research to find out if it is really a good idea to use that card to pay your expenses. If your bank doesn’t offer you good terms on your credit card, you can always look for another financing entity.
Paying in cash is just another way to avoid getting in more debt with the credit card. As some studies have found, people end up spending more money with credit cards than with cash, and the reason is obvious: it is easier to do. The credit card can make you forget about your limit when you are spending money; unlike spending money with cash, which limits you to spend only the money you have in your pocket. This advice will work for you if you don’t want to get in credit card debts again the time you manage to pay off your debt.
Remember: credit card interest rates are frequently really high, and even if you may think that you can pay off the debt just asking for more money, never forget that the debt will get higher and higher every month, and that means that the amount of debt you will pay off every month will get more and more filled of interest rates. And, at the same time, that means that you will pay more interest rates, and less debt… and that is exactly the surest and shortest road to bankruptcy (again).