Debt Articles

10 Ways To Help Pay Off Your Credit Card Debt

In the US and UK credit card debt is on the decline. But there are still thousands of people struggling with credit card debts of over $1000. The longer you take to pay off your credit cards the more money you'll waste on interest charges.

A credit card debt can hang around like a bad smell, for many people it seems like nothing will get rid of it. So if you have credit card debts but you're not sure where to start, here we have written 10 simple ways to help you clear your credit card debt.

1. Cut up your Credit Cards.

Many people keep spending on their credit cards each month. This isn't going to help you clear these debts, consider cutting up your credit cards so you can't use them anymore. We'd recommend everyone with credit cards to do this. It does sound extreme, but if it stops you getting further into debt it's worth it.

2. Monitor Your Spending

Manually check all your monthly expenses. This will help you see where all your money goes. After assessing your spending habits you can then see where you can make changes to save money. You could find that you're wasting a lot of money buying lunches; you could save loads of money making your own packed lunches.

3. Make Sacrifices

After you've checked your monthly outgoings and found out where all your money's going, it's time to make sacrifices. Find anything you could save money on, cut out the Starbucks coffees, use cheaper forms of transport and cut out as many unnecessary items as you can.

4. Get a Cheaper Credit Card Deal

Shop around and get a cheaper credit card, there are many 0% balance transfer cards that are easy to get, especially if you have a good credit rating. Pay off as much as you can while the interest rate is still 0%. This should save you a lot of money and you could pay off your credit card debt much faster. Be careful and make sure that there are no hidden charges.

5. Set a Budget

If you know that you need to $200 a month to pay off your debts by the end of the year, set a budget to help you save $200 a month. Make a list of all your expenses and make sure you pay off all your necessary payments like food and your bills.

6. Make more than the minimum payment

Many people pay the minimum payment towards their credit card debts. This makes it very affordable but you'll be paying off these credit cards for a very long time. You'll save money if you put as much money as you can into paying off these credit cards. If you have multiple credit cards pay off your credit cards with the highest interest first.

7. Deal with the Credit Card Companies

If you don't ask you don't get. Simply call up your creditors and try to reduce the amount of interest you are being charged. Although it seems very unlikely that any credit card company will do this, it is possible. Many people have successfully negotiated better deals with their creditors by threatening to move their debt elsewhere.

8. Keep Some Emergency Funds

Make sure you keep some savings for an emergency. If you have an emergency reserve fund, you will avoid the need to spend money on your credit cards.

9. Consolidate your Credit Card Debt.

Even if you have a poor credit score, you can a get a debt consolidation loan to pay off all your existing debts. Make sure the interest on your new debt consolidation loan is cheaper than the rate on your credit cards.

10. Avoid missing payments.

Don't miss any payments. If you do miss payments on your credit cards repayments, this will result in late fees, these can be very costly.

No Hope?

We hope this advice above helps you to clear your credit card debts. But, if your credit card debt is serious and you feel like you have no hope, you should seek professional help. In the UK and US there are a number of organisations that could help you with your debts. Try seeking out these free debt help companies, they could help you if you are in serious financial trouble.