Dealing with credit card debt can often be a process that never ends. You may become trapped by your debt and will end up dealing with a debt cycle that continues to repeat itself over and over. There is about $800 billion in credit card debt right now! How can you get yourself out of the credit card debt cycle and focus on learning to control your spending? Here are some suggestions that can drastically improve your debt situation.
Know Your Situation
How much credit card debt are you dealing with? The average American has about $15,000 of credit card debt. The debt amount is usually spread out on about 5 different credit cards. You need to create a list of all the cards that you have, the amount of money that you owe on each card, the minimum payment amount, the interest rate, and the amount that you actually pay on the card each month. This will help you to set a debt payment strategy in place so you can start chipping away at the debt that you have.
Pay Off Your High Interest Rate Debt
Pay off the credit cards that have the highest interest rate first so you can start to save more money. The way to do this is by paying the minimum or just over the minimum balance on all of your other credit card accounts. Then you can put as much as you can afford to toward the higher interest rate accounts. When you follow this strategy, you will be able to save more money total because you don’t have as much going toward interest payments. It’s a great way to get yourself out of debt sooner rather than later.
Take Advantage Of Promotions
There are several promotional offers out there. Consider transferring over your higher interest rate credit cards to 0% interest rate credit cards and focus on paying as much as you can afford toward the debt on the 0% interest rate credit card. It will save you a lot of money! Balance transfer cards are a smart way to go, compare rates now to find out which cards are offering the best deals. Using balance transfer cards also helps to cut down on the number of credit cards you have. When you move them all onto one account, it makes it much easier for you to manage and helps to reduce your debt burden as you can focus on one payment instead of several little payments.
Don’t Add To The Debt
The most important rule when trying to pay off credit card debt is to avoid adding to it! Avoid the temptation to use your credit cards again and do what you can in order to pay off your debts. This means you will need to look for another job to have spending money or you can cut out the luxury items you do not really need like cable TV!