Credit card debt is really an expensive thing to have and if you do not have a solid plan in place to reduce and eventually remove it, it can mess up your life.
You use your future income to pay for past debt.
When you reduce your debt, you get to keep more of your income, improve your credit score and are able to get important loans in the future when you need them most.
There are practical steps we have taken in the past to reduce and eventually eliminate debts, getting our finances back into our control.
You can also take these steps yourself and help you get out of credit card debt.
Just follow these 8 tips.
We know eight tips might quite a lot but just take jot them down and take the needed steps.
1.
Stop Using Your Cards This may be a little bit in your face but the first, best and most practical way to actually reducing your card debt is to stop using them cards.
What's the alternative then? Use your debit cards and cash for purchases.
If you cannot afford the thing you need right now with cash, don't buy.
It may sound difficult and not easy to practice but how much do you want to get out of this kind of debt and your personal financial controls back in your hands? 2.
Lower Your Interest Rates Call your credit card lender.
Ask them to give you a reduction in interest rates.
If they refuse let them know you are planning on moving the debt to a lower rate card.
If they want to keep your business, they would give you a rate reduction.
3.
Automate Minimum Payments Late payments and their associated fees cost you money, frustration and duck your credit score.
Avoid them by setting up automatic payments (also known as direct debits) from your checking account at least one week to the due date on your statement.
This will ensure that you do not miss any payments.
4.
Cut Down Your Spending Look at your monthly budget and cut out some of the non-essentials.
Example you can cut out going to entertainment events and use that money to pay off some of your balances.
Clothing you do not need, eating lunch out everyday and so on are some of the things you can cut out.
You can bring lunch to work.
It saves you money and is even much healthier.
5.
Pay More Than The Minimum Take the credit card with the highest interest rates and make an extra payment of the balance each month.
If you focus on the card with the highest rates, you are getting the most bang for your buck because you are reducing your overall payment in interests.
Once that card get sorted, go to the next card with the highest balance.
And be warned here: do not use the paid off card to make any purchases as it can get you back onto to wrong track.
6.
Use Unexpected Cash Wisely If you get some unexpected cash such as cash gifts, tax refund or a raise at work, use the money to pay off some of your balance.
If it's too difficult to use all the money to make debt payments, keep like 10% to buy something for yourself to motivate you.
7.
Keep Your Eye On Your Progress Be motivated by your reducing debts as your balances reduce each month.
This will help motivate you to continue.
You can draw a chart showing your progress and stick it on your kitchen wall or anywhere it may be most convenient to you and look at it every month to keep you going.
8.
Race A Friend This may not always be possible but if you can pull it off, it would be great.
To help keep you motivated even further, race another friend who is trying to get out of debt.
Track your progress and see who gets out of debt first.
There are many people who have used these same tips you have here to reduce their debts and taken total control of their finances.
So why can't you do the same? Take them and start today.