It is no secret that most of us face credit card debts at least once in our lifetime, and it is also a fact that debts are a significant burden not only on financial well-being but also on the overall quality of one’s life. Increased interest rates and increasing debt can create a feeling of impossibility, but with strategic planning and execution, you can make your debt disappear!
According to 2024 Forbes Advisor, by the end of 2023, the average credit card debt per borrower was $6,360, or about 10% higher than the year before.
Americans between the ages of 45 and 54 are most likely to have credit card debt (57%), while those aged 75 or older are least likely to have credit card debt (29.8%).
This might sound like a struggle! But these statistics prove that you are not alone in the credit card debt challenge, and it’s advised that you take up this as a healthy challenge and try to win the race. Coming out of the burden of credit card debt can help you evolve as a person and give you greater insight into money management.
In this blog, you can read about 9 effective ways to get rid of your credit card debts! Keep reading to learn more.
9 Proven Strategies to Get Rid of Credit Card Debts
- Create a friendly budget strategy
Skillfully crafting a budget-friendly strategy is the first and most efficient step to getting rid of your credit card debts.
You can start by analyzing your monthly income and expenses, recording the money spent in a diary or notes app, and evaluating this list by the end of every week. Doing this creates a realization of money spent unwisely, helping you to strategize your budget for the month.
- Pay more than minimum
There’s always a minimum amount to be paid every month to pay off the debt. Try to pay more than the minimum amount, as paying the minimum would only prolong your debt repayment and also increase the interest amount that needs to be cleared.
Paying an amount more than the minimum amount can help you get rid of your credit debt in a much faster way and also allow you to save money on interest.
- Find methods to earn more
Having even a little more money a month can help accelerate your debt repayment. Therefore, along with focusing on your main career, try finding time to increase your income by taking a few side gigs and freelancing. You can even sell clothes and items that you no longer need to thrift stores!
Grab any and every opportunity to make money; this can elevate your strategies to get rid of credit card debts.
- Prioritize high-interest debts
If you are someone struggling with more than one credit card debt, give importance to the one with the highest interest, accumulate or gather money to pay it off, and then move on to the subsequent debts and strategize from the highest interest to the lowest. This approach is also known as the debt avalanche method.
- Consider balance transfer
It would be a clever strategy to move high-interest balances to a card with a lower interest rate. This would help you manage your debt efficiently.
You should also know that many credit card companies offer 0% interest during the promotional period. Try switching to one such issuer, but you should always keep in mind to pay the balance off during the promotional period to get the benefits of 0% interest.
- Contact your credit card issuer
Contact your credit card issuer to negotiate the debt. Most companies are willing to help by issuing a lower interest rate or by providing a reasonable payment plan.
- Consolidate your debt
The master plan to get credit card debts is to consolidate multiple debts into a single loan with a lower or 0% interest rate. Personal loans or debt consolidation loans are wise options to be considered. Make sure you study and compare all the available loans on the market before finalizing one.
- Spend less and save more
Cut back on spending by avoiding leisure activities like going on a trip, luxury dinners, impulsive purchases, subscription services, etc. for a while.
By controlling the amount of money spent, you can increase the amount of money saved, which can be used to get rid of credit card debts.
- Use surprise gains wisely
If you are lucky enough to get a surprise bonus or refund, be smart and use this amount to get off your credit card debt. Paying a large amount at once can significantly reduce your balance and interest charges.
Seek professional help
If you are an anxious person and find it difficult to manage your credit card bills, do not panic; seek professional help. There are numerous credit card counseling agencies and lawyers specializing in bankruptcy laws who would readily help and strategize your liabilities to get rid of your credit card bills.
The only thing you need to remember while entrusting your debts to someone is that the agency or firm needs to be reputable, accredited, and experienced.
Conclusion
Getting rid of credit card bills may sound tricky and difficult, but it’s understood that it requires planning, patience, and dedication. Though debts are frightening and create a lot of tension in the life of a person, following these steps and employing these strategies can help you restore command over your financial life and provide you with a happy debt-free life.
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