Most of us carry at least one credit card with a bit of debt. While for some, this is no big deal, others are drowning in it with no end in sight. The best thing you can do is make an effort to get out of debt more quickly. There is more to do than just pay more, and here are some of the top tips to help you become credit card debt-free.
Table of Contents
Call to Get a Lower Interest Rate
Did you know you might qualify for a lower interest rate? If you’ve paid your card on time for a while, many card companies are willing to offer a lower interest rate. This helps because less interest means your payments will be lower. You can keep paying what you pay now to get rid of the debt more quickly.
Pay More Than the Minimum Payment
When you pay more than the minimum, you cut into the principal amount of the credit card more quickly. This means you’ll pay less interest and more of your money goes to getting out of debt. Too many people pay just the minimum and never feel like they make enough progress toward getting out of debt.
Stop Using It For Purchases You Don’t Have Money For
There are people who have credit cards and leverage the points for fun freebies. They pay off their card each month and never spend more than they can pay off. These people have incredible self-control. If you’re looking at an article about how to get out of credit card debt more quickly, it’s likely you aren’t one of them. One of the first things you should do when you decide you want to get out of credit card debt is to stop using it. Mostly, stop using it for purchases you don’t have the money in the bank for. This is one of the hardest but most important tips.
Create a Budget
A Budget is simply a plan for what you want to do with your money. You’d be surprised at how many people don’t budget. When you don’t have a plan for your money, you are less likely to set and achieve financial goals. This includes getting out of debt. Without a budget, it’s easier for your credit card bills to grow unchecked. This leads to problems down the road as your credit card hole goes deeper and deeper. Many people enlist the help of professionals they find on third-party review sites to help them manage their money.
Sell Extra Things You Have in Your House
If you’re like most of us, you have too much of something in your house. Get online to somewhere like Facebook Marketplace, Craigslist, or put an ad in the local newspaper (people still read those). Host a garage sale and start getting rid of the excess. Not only will the extra cash help you pay off your credit cards faster, but your home will also feel lighter with all the extras gone. An extra $250 in your pocket for a weekend of work can be a big boost to your plan.
Get a Side Gig
If you’re really committed to getting out of credit card debt and you have the time, a side gig like Uber or Instacart can make a big difference. With the extra cash you earn, you can set aside some savings, pay for unexpected expenses, and add more money to your debt pay-off plan. A side gig can temporarily increase your income to help you get out of debt more quickly. Once you’ve paid off all the credit cards, your money can go toward things that get you more excited, like going on a vacation or saving up for a home.
Get a CPA
A good CPA will have excellent insight into what you can do with your budget to pay off high-interest credit card debt. You can easily find one online, especially if they’ve used good SEO for accountants. The important thing is to find an accountant who will answer your questions and help you set up a plan to get out of credit card debt more quickly. Most people don’t think about using an accountant because they don’t feel like they have the extra income. The truth is that a CPA will help you save money in the long run because they can help you maximize your budget.
Featured Image by rawpixel.com