7 Fast Ways to Pay Down Your Credit Card Debt
If you’ve used your credit card to pay for something, that means you’re in debt. And if you don’t pay your debt on time, you’re in big trouble.
Many people got in trouble because they used their credit cards too much, and of course, they realized that too late. This is a common problem because people who own a credit card are more willing to purchase something using their credit card rather than cash.
This is very interesting because banks know this. They market their credit cards based on that fact and keep finding new ways of activating existing owners and to attract new ones.
Nevertheless, I want to inform you that there are solutions to avoid money problems. Here is the list of 7 easy ways to pay down your credit card debt as fast as possible.
1. Cut down your budget as much as possible
It’s very simple, the less budget you have the less likely you’re going to spend it. Look closely into your monthly budget and see if you can cut it down significantly.
Cross out things that you don’t really need, like a new phone, dining out, extra phone data, online membership or subscription, and many more. Cut everything down and watch as your budget goes down.
Now with the excess money that you have, put it toward paying your credit card debt. If you feel like it’s too difficult for you, try setting aside a little bit of money for entertainment and other items each month. Just a little bit, and then you can decrease the amount gradually until the debt is paid off.
2. Put bonuses toward paying your credit card debt
If you’ve received some bonuses or unexpected money like tax refunds, year-end bonuses, tips, and from other sources, put it toward your debt, if possible. I said if possible, because you may use it to cover your bills and other essential expenses. Otherwise, every penny should go toward paying your credit card debt.
The amount of money you get from bonuses won’t be enough to cover the entire debt, but it can help.
3. Consider an alternative to childcare
Many parents are struggling to pay for childcare considering how expensive it can be. But the problem is that parents obviously want the best for their children but can’t stay with them at all times due to their jobs.
That being said, you shouldn’t give up just yet. Try to look for an alternative, maybe your parents are in the area? If yes, then you should ask them if they can take care of your children while you’re working. By doing this you can cut your monthly spending by a lot.
You can also discuss this with your friends who are also a parent. Maybe you can try rotating who watches the kids throughout the week.
4. Always look for opportunities to boost your income
This may sound so obvious, but it does make sense. You can pay your credit card debt faster if you earn more.
Your current job may offer you the opportunities to earn more money by working overtime or via promotions. If you’re already done that or that’s not possible, you can start doing a side gig. Many workers are working a second job to increase their income. Perhaps, you can start by looking for part-time jobs in your local area or freelance jobs online.
5. Sell some stuff
This is similar to cutting your expenses. Look at your belongings, are there items that you can live without? Maybe you can sell some of your clothes in the closet that you haven’t worn in years. Wine glass set is a common item that people bought and never use.
Selling used items are easy nowadays, you can use Amazon, eBay, or Craigslist, set a price that you want and wait. If the price is right and the item is still in good condition, you’ll get a buyer without waiting for long.
You never know, maybe you can get a considerable amount of money from selling some of your stuff. And you can use the money to pay off your debt.
6. Negotiate your APR
This can be tough, but you should at least try. Credit card issuers usually won’t budge and change their terms for you or any customer. But if you ask them politely and you’ve been a loyal customer, they might do it for you.
7. Automate your payments
If you’ve organized everything using the tips above, it’s time to make it official. Set an automatic payment on your bank account to automate your debt payments each month. Now you don’t have an excuse to delay your payments anymore.
But be careful though, you don’t want to go overboard and end up going broke. Only automate the amount that you’re comfortable with each month. If that’s not enough or you feel like you can pay more, you can make extra payments whenever you want.
Be smart at managing your money
Paying off debt sucks, but you must do it or be buried in debts. After you’ve finished paying off your debt, you got to be more careful before you decide to use your credit card again.