Debt can certainly be a huge cause of grief and stress and many other negative feelings you can think of. One of the main debt areas that seems to continue to plaque us and lead us into further financial difficulty is of course, credit cards. For this very reason, many of us are also always trying to uncover new methods of getting rid of debt – and in particular, paying off our credit cards.
Here are three financial steps you can take to escape your own credit card debt. You can give these methods a try and see for yourself if they are an effective vehicle for you to unload your own personal credit card debt as soon as possible.
1) Increase your Monthly Payments by 20-25%
The first point here is the age-old strategy of looking to increase your monthly payments. When you think about it, this makes a lot of sense a step that many of us have probably tried to perform at one time or another in order to pay off more of our credit card balance. For those who are in a position where only paying the minimum balance or a bit more than that is the case, then it may be likely that their balance is still creeping up or at least not going down very consistently. If you can increase your payments each month – and by a specific amount that is, then as a result, you are more likely to see your credit card debt go down at a more constant rate.
Of course you will need to choose an amount that is realistic for you – and this may differ from person to person. However, the amount I have suggested here being that of 20 – 25%, is likely an amount that is both do-able and also enough of a payment increase to make a noticeable difference. Subsequently, if you are able to pay off more than this percentage, then that is even better – however starting out with this increase is a good first step and is definitely still a beneficial progression.
2) Stop Adding Debt to the Card – Pay with Cash Instead
A second step to ridding yourself of your credit card debt is to actually stop using the card as much as possible. If you are able to set your card aside, especially until you have been able to pay off a good portion of it, then this can be an extremely effective method of not adding to your debt. Obviously there will still be a variety of purchases and payment you will need to make, however if there several areas where you can instead pay with cash, then you are in deed helping to create less overall credit card debt for yourself. Additionally, when you pay with cash instead of credit, you can avoid the interest charges that can make it even more challenging to pay down your credit debt over time.
In order to ensure you are able to make your necessary payments and purchases with cash, it will be important to make a budget so this process will be as manageable as possible. To make sure your cash will last and you don’t end up missing payments and running into additional financial difficulty, planning ahead and accounting for your money every step of the way is vital. In the end, devising and sticking to your budget, will be an important component of this strategy and enable you to be a more responsible credit card borrower.
3) Make Two Payments a Month – Instead of One
Now this last strategy is one that I have talked about before in relationship to making minimum monthly payments. If you are only able to meet the minimum balance on your credit card when it is due that month, it may still be feasible to increase your monthly payments. If you are able to make a second payment equal to that later in that same month, then you will have the means to make some more headway of your credit card debt. This doubles the amount you are paying – so if typically, you make a monthly minimum payment of approximately $100, then by making a second payment later that month, then you have found a way to pay back even more of your debt. Over the course of a few months, this routine can certainly make a difference in the amount you have been able to pay off.
While this strategy can make paying off your credit card debt each month even more manageable for you – if you are able to make two payments at a rate higher than the minimum balance then this of course ramps up the total amount you are able to pay down each time. Ultimately, this last strategy can help you increase your monthly payments by 20 – 25%. As you can see, all three steps can work well together to help you achieve this overall goal.
By combining all of these strategies into one approach you can pay down your credit card debt significantly. While some credit card debt solutions may sound somewhat overwhelming, and even complicated – these three steps are fairly clear as to how they can be implemented and also how they can directly translate into relief of credit card debt. Utilizing these steps can help you escape your credit card debt, and avoid the fear you may feel about falling further into debt.
In fact, these are methods that you can rely on and can always come back to, whenever you find your debt is creeping up once again. Let’s face it, debt is an ongoing reality for many of us – and a part of our lives that require proper attention and the necessary action be taken. It is always a good plan to look for ways to manage your credit card debt – and thereby not letting it take away from your livelihood and your financial freedom.