Pay Off Credit Card Debt
Rising Credit Card Debt
It seems that everyone nowadays has credit cards. Even college students are getting approved for credit cards before they even have an income. It is very difficult for many people to be careful with their credit card spending, especially during holidays and other special occasions. If you've charged way more than you intended, there are ways to pay down your credit cards more quickly. Here are some tips for getting rid of credit card debt.
Ignore Minimum Credit Card Payment Amounts
Absolutely pay more than the minimum amount on your credit cards each month. If you only pay the minimum required payment, you could be paying off credit cards longer than you pay off an automobile. With large credit card debts, the pay off could take even longer.
Highest Interest Rates First
If you have more than one credit card, pay off the credit card with the highest interest rate first, not the one with the highest balance. Pay as much as you can each month on the credit card with the highest interest rate until you get it paid off. Then move on to your next credit card with the highest interest rate.
Pay Off Credit Cards, Don't Save
If you have money in a savings account, withdraw all of it to help pay off your credit card debt. It makes no sense to let money sit around drawing 4 or 5% interest when it could be used to get rid of debt with a much higher interest rate.
Credit Card Offers
Watch out for special credit card offers. We all get these in the mail from time to time. These are the credit card deals that agree to let you transfer your credit card debt and pay little to no interest on the balance for a specified length of time. When you get one of these credit card offers, transfer your balance and pay as much as you can on the new card while the special offer is in effect.Do your research before transferring a credit card balance, however. Many of these offers have hidden stipulations in the fine print. Be sure that there aren't any ugly surprises hiding in the legalese.
Little Things Add Up
Try to find little ways that really add up where you can save money. For example, don't stop at the coffee shop every day and get a large specialty coffee and muffin. Just doing this alone could give you an extra $125-150 each month. Use that money to help pay off your credit card debt.