4 Tips to Reduce & Manage Credit Card Debt
Credit cards get you into financial ruin very easily, and it’s a lot simpler to get into it than it is to get out of it. With the economic crisis, many people have been forced to turn to credit cards to even pay for groceries, making it very difficult for them to get out of debt. Here are four ways to help you reduce your credit card debt and keep it managed in the future:
Credit cards get you into financial ruin very easily, and it’s a lot simpler to get into it than it is to get out of it. With the economic crisis, many people have been forced to turn to credit cards to even pay for groceries, making it very difficult for them to get out of debt. Here are four ways to help you reduce your credit card debt and keep it managed in the future:
Throw extra income at credit cards, not new purchases – If you ever find yourself with a little extra cash, remember that you have other responsibilities far more important than a new stereo system. We all need a little retail therapy at times, but before you go out and do that, remember that it’s probably one of the things that got you into this mess in the first place. Treat yourself once you’ve made progress… and do it with cash.
Don’t just pay the minimum – Many credit cards are attached to interest rates and fees that make them near impossible to pay off if you only send the minimum payment. Even if you are only able to focus on paying down one card at a time, make sure you pay at least just a little more than the minimum payment on each credit card. Even paying just one dollar over on each payment will boost your credit score and help in the long run.
Tell people about your plans to reduce your debt – This is probably one of the most important things to do that people rarely follow through with. For many, money troubles are embarrassing and they want to keep them private. You don’t need to shout from the mountaintops that you’re $30,000 in debt though. Just make it clear to friends and family that you are focusing on eliminating some debt and need to curb your spending for a while.
Evaluate your spending habits – Take a long, hard look at what you spend money on every month. Are you charging a $5 cup of coffee to your credit card every morning? Doing your grocery shopping without any semblance of a list or plan? Still have clothing in your closet with the tags on it, but you’re off to the mall anyway? Be realistic and get tough with yourself. Buy a reusable coffee mug and make your own coffee every morning. Make a list of what you really need when you go to the grocery store, and try not to deviate from it with impulse items. And if you have clothes you haven’t even worn yet… it’s a no brainer, but don’t buy something new just because!
Skybank Financial is a payment processing company that serves small to mid-sized companies in the United States and South America. Do you have any tips that have helped you reduce your credit card debt? Share them with us by commenting below!
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