Paying off your credit card debt can be very challenging if you don’t have strategies that can help you get rid of the debt.
Below are some of the ways that can help you getting out of – or reducing – your credit card debt:
- Budget to pay a set amount every month.
As your debts decrease, the minimum amount you are required to repay reduces. This just drags the agony on for years – and is a psychological temptation to spend on the card. Take your most recent repayment and set that as the amount you will pay, without fail, every month until the debt has all gone. You’ll be amazed at how fast it reduces.
- Raise your repayment
If you have any loose in your monthly budget, raise your monthly repayment just a little for an even quicker route to being debt-free.
- Hide your card/s
Don’t take the card out with you; put it in a drawer or the safe at home and leave it there.
- Prioritise repayment
If you have more than one card, the total debt can look intimidating. Instead of trying to deal with it all at once, start by focusing on the card with the lowest debt.
Bump up the repayments on that one, and don’t use it at all; you’ll feel great.
- Use your savings
If you have any savings accounts, you’d be better off using the money which is costing you in interest. But don’t touch savings you’ll need to live on – like retirement annuities. You can also use any other extra cash that comes your way: bonuses or gifts, for example.
And look around your home to see if you have anything you could easily sell on a site like OLX: the bicycle or treadmill you never use could boost your financial health.