Credit Card Debt Management

It can be hard to pinch pennies when times get tough, but with a few strategic steps, you can pay off debt — and faster than you ever imagined!

Stop the madness! First and foremost, you must stop piling on debt. Reduce expenses by cutting out anything nonessential. Try using cash instead of plastic. Studies have shown a direct link between cash and lower consumer spending.

Get your interest rate as low as possible. Paying less interest means paying more toward the principal. However, it can be risky to open a new credit card in order to transfer your balance to a lower rate. This can be a real ding on your credit report. You should ideally transfer your balance to a lower-interest credit card that is already open in your name. If that’s not an option, look into getting some low-APR convenience checks on one of your other lines of credit and use the checks to pay off your other creditors, thus consolidating your debt under a lower interest rate.

Pay as much as possible toward the balance. Instead of maxing out your credit cards, max out the amount of money you throw at them each month. With the money saved on your many expenses, you can expect to make major headway on those credit card balances in no time. Paying off debt can resemble a marathon race, but persistence, patience and having a plan will help you win in the end.