Putting in the work needed to get rid of credit card debt may be the single best step you can take to improve your financial health. Interest rates can run high, and eliminating those nasty payments can be a liberating moment in your journey to financial success. Sometimes, however, the thought of tackling those debts seems like an impossible task.
Here are 4 tips on how to get rid of credit card debt a little bit at a time.
- Stop using credit cards: This is easier said than done, but if you are accumulating a large amount debt, the payments are only going to get worse until you stop the bleeding. Stop using all your credit cards while you are paying down debts, or else it will constantly feel like you are taking one step forward with two steps back.
- Make a budget and follow it: If you want to pay down your debt, you absolutely need to create a budget and follow it. This is the only way to be sure you are spending less than you earn. Track all of your money and look for any opportunity to cut your expenses until you are out of debt. This might mean giving on some lifestyle factors in the short term.
- You probably shouldn’t consolidate debt: If you have excellent credit, there are balance transfer cards that offer a temporary zero percent interest rate for a fee. If you can pay off your debt in that timeframe, it will be the cheapest option. For most people with credit card debts, however, this won’t be an option. For most people, it’s better to set up a plan for managing your debt and paying it down.
- Find a credit counselor: A good credit counselor can help you create a debt management plan and provide expert advice on how to pay down your debts and negotiate with your creditors. Try to choose a counselor that works for a nonprofit organization, as they will have no real incentive other than to help you pay your debts.
Getting rid of credit card debt can be a stressful experience. It’s easy to get overwhelmed and give up. Know that it is possible to tackle your financial problems with the right information and planning. No matter how bad things get, there is always a way to land on your feet.
Julian, Crowder & Shuster are Lewisville bankruptcy attorneys. We also handle family law and criminal defense.