Tips on Paying Off Your Credit Card Debt Fast
Published: 02/08/2011 by Kristie Lorette
Credit card debt can add up fast and leave you drowning in debt. When you are ready to take a stand against your credit card debt, there are steps you can take to regain control of your finances and get rid of the debt once and for all. Believe it or not, the credit card companies are now providing you with all of the information you need to put a “get out of debt” plan together. In response to the new credit card laws, credit card issuers are required to provide specific information on your credit card statements. Some of this information directly relates to tips you can use to get out from underneath your credit card debt fast. Other tips, you simply have to tackle on your own.
Stop Adding to Your Balances
The first step to getting out of credit card debt fast is to stop using your credit cards. Do not use your credit cards to make purchases that you cannot afford to completely pay off when the credit card statement comes in the mail. Since you are in credit card debt, you probably do not have the willpower to do this, so put the credit cards away for good and stop using them altogether.
Make a Payoff Plan
Next, gather up your credit card statements and look at the pay off information that exists. There should be a box, graph or text that illustrates how long it will take you to pay off the balance if you only make the minimum payment. Second, it shows the payment you have to make to pay off your debt in three years. This is the payment you need to focus in on. Add up the three-year payment amount for each of your credit cards for a total monthly payment. Commit to paying this amount or more each month. The more you pay the faster you will get out of credit card debt.
Also, make it effortless to make this payment on each card. Call the credit card companies to schedule automatic payment deductions from your bank account. Or, you can schedule your own bill pay to occur out of your account each month through your bank.
Find Extra Cash
As part of your commitment, you also have to find extra cash in your current budget or find ways to bring in some extra cash. Cut back the cable or downgrade your cell phone package. Stop making trips to the local coffee shop three times a week and brew coffee at home instead. Funnel all of the money you would normally spend on these items to make the additional payments to your credit cards. If it means taking on a second part-time job for the next six months to a year, then do it.
Getting out of credit card debt requires you to take a proactive approach to making it happen. If you use the information and resources available to you, you can make a get out of credit card debt plan. Once you create and commit to the plan, carrying it out is the only obstacle left to hurdle before you are finally credit card debt free.