How to Quickly Pay Down Credit Card Debts
Credit card debt can be intimidating when you get all of your statements, but it does not have to be. There are several ways to both cut your spending and reduce your debt, without feeling overwhelmed. To help the readers of our blog we have compiled this list of simple and easy ways to reduce your debt quickly, and achieve financial freedom.
Get out the scissors.
If you are really serious about eliminating your credit card debt once and for all, then you need to take the initiative and stop yourself from using them anymore. Cut up all cards that are maxed out first, since you will definitely not need those any more. Then, cut up every other card except for one card to be used in an emergency only (preferably the one with the lowest interest rate).
Pay more than the minimum.
You should never pay just the minimum on your credit card unless you absolutely have to. The lower the amount you pay each month, the longer you will be in debt. It’s that simple. If you paid just the minimum on a $2,500 balance, it would take you over 20 years to pay off. Always try to pay as much each month as you can, and start paying off the cards with the highest interest rates first.
Request lower interest rates.
Most people do not realize that getting a lower interest rate on a long-standing credit debt could be just a phone call away. If you want to pay off your cards quickly, then you might try calling each of your creditors and requesting a lower interest rate. Do not be shy or nervous, creditors get these calls all the time. Remember, the worst thing that could happen is that they say no.
Consolidate your credit.
Consolidating your outstanding credit card balances allows you to put all of your unsecured debt onto a single account. This can do a lot of good, because not only will your interest rate likely go down, but you will also have the convenience of having only one bill. However, you will probably need the help of a debt management company (like STARTOVERTODAY.com) to assist you with the consolidation, as it can be quite complicated.
“Freeze” bad accounts.
You do not even need to call your creditors to freeze your spending. Just get a bowl of water, put your cards with the highest interest rates in it, and freeze them. This way, if you really want to buy something, and need one of those cards to do it, you will have to wait until the bowl is thawed. Hopefully by that time you will have decided the expense was not worth it, and you will put the bowl back in the freezer
Actually make a budget.
Sure we all say that we have “budgets”, but how many of us actually stick to them? Try making your budget part of your daily schedule. You can make yourself either a drawer or filing cabinet for budgeting materials, or you could try an online service like Mvelopes.
Cut spending for good.
This should be obvious, but we will remind you nonetheless. In order to cut major debt out of your life, you need to stop spending more money than you have. Make a list of the things you spend the most money on, and see what you can sacrifice. If you can cut out even just a hundred dollars of spending a month that is another hundred you could put towards reducing your total debt.
Debt settlement.
If your credit card debt really gets out of hand then you might consider reducing it through a company that offers debt settlement services. They will take the job of calling your creditors to negotiate on your behalf and settle outstanding balances for less than what is owed. This option is widely accepted and used, but is most convenient for those facing heavy collection activity with outstanding balances of $10,000 and above. Utilizing a professional settlement company can also help you to become completely debt free in as little as one year.
Tags: credit card debt, credit cards, creditors, Debt Management, debt settlement, pay down debt