How to Eliminate Credit Card Debt Fast

How to Eliminate Credit Card Debt Fast
If you’re saddled with credit card debt that’s putting a strain on your finances, then it’s important that you eliminate it as quickly as possible. Otherwise, you’ll end up paying way too much money in interest expense over time and hurting your long-term cash flow.

Here a few steps to help you eliminate credit card debt fast.
Pay Off More Than the Minimum Each Month

Credit card companies are notorious for demanding that their customers make a minimum payment each month that just barely reduces the principal. If you just make the minimum payment, you could end up paying off your credit card debt for years longer than you expected.

The best way to avoid getting into that scenario is to beat the system by paying more than the minimum each month. One good trick is to simply add the month’s interest charge to the minimum payment and pay off that much every month, as opposed to the minimum. That way, you’ll take much more off the principal of the balance than you would if you paid the minimum by itself.

Also, if you have an unexpected cash infusion, such as a Christmas bonus from your company or a tax refund, consider putting that money into credit card debt relief. It may seem tempting to want to “live” off of the extra cash that you receive, but you could end up hurting yourself over the long run as you’re forced to make credit card payments for a long period of time.
Consider a Consolidation Loan

If your credit card interest rates are exorbitantly high and you’ve got good credit, you might qualify for a debt consolidation loan. Please note: another loan won’t get you out of debt immediately, but it will serve to get you out of debt quicker because your interest expense will be lower.

Peer-to-peer lenders offer excellent opportunities for debt consolidation loans. Visit sites like LendingClub.com or Propser.com and you might find that people all over the country are more than happy to chip in to help you get a loan at an affordable interest rate that will help you pay off your credit card debt. You’ll also find that the monthly payments are more manageable.
Pay Off the High Interest Rate Cards First

You might have a Chase Freedom card that offers you an affordable rate. In addition to that, though, you could also have a credit card from another company that’s hitting you with a 16.9% annual interest rate. If that’s the case, pay off the card with the higher interest rate first.

That’s a good strategy for two reasons. First, you eliminate a high interest expense when you pay off the card with the higher rate first. Second, it’s psychologically rewarding to see the balance on one card drop dramatically, and even disappear, over time as you work to pay it off.

It’s so easy to get credit cards with no credit these days. As a result, you might have acquired way too much credit card debt and now need to escape from it. Fortunately, with a little financial discipline, you can emerge from that debt quickly.

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