Practical Tips for Paying off Credit Card Debt --- Ways to Get Rid of Credit Card Debt Faster
Paying off credit card debt -- a recent poll said that the majority of Americans carry $16,000 on credit cards. Eliminating this debt is an important step to living debt free.
This debt may come from medical expenses, dental expenses, or simply not earning enough money to make ends meet.
However you got into this debt, what matters now is that you get out of it. Below you will find some practical tips to start eliminating the debt:
1. Save money to avoid more credit card debt.
Always have a small amount of money put away in a savings account in case of a cash emergency. Put away a little each week, until you reach your goal. I recommend between $800-$1000 minimum. Another option is to put away some of your tax return for this purpose.
2. Pay off one credit card at a time, paying more than the minimum payment.
Pick one credit card that you want to pay off first, and pay as much as you can on it each month (definitely more than the minimum payment). Some people prefer to pay off the card with the highest balance. I would personally choose to pay off the card with the highest interest rate first. This way you are not paying any more interest than you have to.
3. Find sources of extra income for paying off credit card debt faster.
This may mean taking on an extra job (example: paper route) to earn a few hundred extra dollars a month. I have done numerous part-time jobs from home including online survey sites or writing articles in order to pay off debt and save money.
4. Call your credit card companies and try to get the interest rates reduced.
I have tried this before, and sometimes companies are willing to negotiate a lower interest rate if you have been a customer for awhile and pay your bill on time. Even if it does not work out, it is worth a try to help in paying off credit card debt.
5. Lower your bills, and use the extra cash to pay down your credit cards.
Look for lower insurance rates. Shop more carefully for groceries, and eliminate bills for unnecessary items like cable television. Just this step alone saved my family a bundle each year, and put us on the road to debt free living.
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