Being in debt puts a dark cloud around your entire life. Not only are you unable to get a good interest rate on loans, but you may not be able to get a loan at all. The good news is you’re not alone; plenty of people are in debt for several types of reasons. If you’re looking for easy ways to get out of credit card debt, you’ve come to the right place. Here’s how you can start paying off your credit card debt stress-free.
Create a Budget
If you want to relieve yourself of debt issues, create a budget to follow. You can track your expenses and income with professional tax software or a budgeting app if you don’t need something so robust. By connecting your bank accounts to your budgeting app, you can get a clear picture of your spending habits.
Once you know how much money you have coming in and going out, you can determine how much money can go to debts each month. If you find you can do very little to pay off your credit card bills, then you can look in your app at where you spend your money. The odds are you may have one recurring bill you can cut out for the time being, such as your Netflix subscription.
Pay Off The Biggest Debt First
Take a look at your credit card interest rates. If you don’t have this information, you can easily find it online or contact your bank. Next, sort the interest rates from highest to lowest and make a plan to pay off the most expensive debt first. By paying off the debt with high interest, you’ll increase your payment on the account while making the minimum payments on your other accounts.
If you need to make a dent in your debt right now, then it’s time to pay more than the minimum balance on your credit cards. Limiting your repayment to the minimum monthly installment is not the best way to manage debt and is not a long-term solution. It’s fine to pay the minimum balance for a few months, but you shouldn’t aim to do it every month since you’ll put yourself in even more debt.
By paying off more than the minimum balance, you can truly make a dent and pay off balances as quickly as possible.
If you have any high-interest credit cards with a balance you believe you can pay off in just a few months, then you can move the debt to a card that offers a zero-interest balance transfer. However, you’ll need to pay off the debt before the balance transfer expires. If you don’t, you could be hit with a higher interest rate than before. However, if you do this method correctly, you can save hundreds of dollars on interest.
Stop Using Your Credit Cards
If you want to get out of credit card debt, then you’ll need to stop using your credit cards until all of your debt is paid off. When you go shopping or out with friends, leave your credit cards at home. This will help you think about your spending because you’ll need to use cash or your debit card, where the money instantly comes out of your account.
Increase Your Income
One of the fastest ways to quickly get out of debt is to increase your income so you can put more money towards your monthly credit card bills each month. We know this is easier said than done, but there are ways to increase your income, such as saving, investing and earning a second income.
First, you can talk to your boss about getting a raise, especially if you’ve been performing exceptionally at work. If that doesn’t work, you can pick up a second job or a side hustle. Nobody wants to work more than they have to, but unfortunately, it can become a necessity if you’re in debt.
Consolidate Your Debt
With debt consolidation, you can repay your credit card debt with a single loan and a single monthly payment. You can often get these loans with a lower interest rate, which can help you save hundreds of dollars. Consolidating debt can make managing your debt easier as you’ll only have to focus on one account.
Change Your Lifestyle Habits
You got into credit card debt by living outside of your means and spending more than you should. While there are some types of debt that can help you improve your life, such as student loans, credit card debt is something you can completely prevent. Instead of continuing to live outside of your means, take a look at your spending and find things you can cut out of your life. Anything from food delivery to subscriptions can drain you of the money you need to pay off your debt.
If you’re not using an app or tax software to view your expenses, you can look at your credit card and debit card statements online and look at the money leaving your account. If you notice any trends, then it’s time to reflect.
For example, if you can’t help but online shop, it’s time to go to extreme measures to stop yourself from unnecessary spending. Take your payment methods out of your favorite online stores and put that credit card into a safe place in your home so the next time you go shopping, you’ll have to get up and grab it, which can give you enough time to think twice about your purchase.
Can You Pay Off Credit Card Debt Stress-Free?
If you don’t increase your monthly income, then it’s going to be difficult to pay off your debt without changing your spending habits. Paying off credit card debt will not be easy, and it’s something you’ll need to be proactive about. If at all possible, stop using your credit cards immediately so you can focus on paying off your debt rather than adding debt on top of it while you’re trying to make progress.
Guest Author – : Matt Casadona
Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music.