Sure Fire Ways to Pay Down your Credit Card Debt
You’ve made yourself promises, time and time again, that you would pay down your credit cards and be done with them, once and for all! Now, here you are again, with mountains of credit card debt and virtually no plan to get yourself out of this mess.
Perhaps, instead of simply being angry at yourself for not being able to pay down your credit card debt, you should develop a game plan and stick to it.
The following tips will lead you in the right direction so that you can, once and for all, tackle your credit card debt:
- Thoroughly examine your purchases over the last year – Ask the credit card company to send you a comprehensive list detailing your credit card purchases over the last year. Most credit card companies can easily send you this information if you ask for it. Then, pour over the list carefully and determine if there are certain patterns and trends regarding your spending. The first step to curbing your purchases is to recognize how you are racking up the credit card debt in the first place.
- Cut up the card but don’t cancel the account – If the temptation to spend is just too great, you will need to cut up the card – but don’t cancel it! Canceling a credit card can initiate an interest rate hike by your credit card company (something you certainly don’t need when you’re trying to pay down your debt) and it may also negatively impact your credit score.
- Make a new budget and stick to it – Make yourself a detailed, comprehensive budget and be honest! Do you spend $2 every morning on a cup of coffee? How many times do you go out to eat every week? Is your premium cable plan really necessary? Most people are amazed to find that their day-to-day spending habits are preventing them from paying off their credit card debt. Find extra money in your budget and put it towards your credit card balance – no exceptions.
- Consider consolidating onto one, low-interest credit card – If you have several credit cards, consider consolidating them onto one, low-interest credit card. This can often make the task of paying off credit card debt more manageable.
- Take a credit counseling course to learn new ways to manage your finances – If you are still struggling to make good financial choices, consider taking a credit counseling course through your local community college. These courses can provide you with a wealth of information so that you can make better choices regarding your finances.
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