Credit Card debt is a sneaky trap. Many consumers don’t sign up thinking they will neglect their obligation. People begin to fail, once they start swiping, trying to pay the minimum; while still swiping. We were always told “Credit cards are a great tool to build and create more credit.” With the right skills to utilize credit, you can build wealth. Credit cards are considered revolving debt. The more you swipe, the more you can expect to pay at the due date. What makes this even more dangerous is ; not only you will be paying a minimum, you’ll be paying interest, charge fees, or late fees. It is good to always read the fine print before signing up for a new credit card. Understand the interest rate, charge fee, and late policy. Credits Card debt can easily send you into a deep hole that will become harder to dig out.
How it looks swiping your credit again card while trying to pay the balance due..
How do I tackle a high balance?
The first step to get out of credit card debt is: STOP USING THE CARD! Yes! Stop using the card. Put it away! Now, sit down and analyze how much income you bring in monthly and how much you can put towards your balance. One of the most popular methods that works for many is Dave Ramsey’s Debt Snowball. The debt snowball method is a debt-reduction strategy where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment.(-Via Dave Ramsey). I will always advocate, “Do what works for you!” What works for one may not work for you. Create a game plan that works for you and be consistent. Don’t get discouraged if you are not seeing fast results. Paying down balances way over $1000 may take time; depending on your financial situation. If you want to rid your debt quicker, pick up a side gig, get more hours at work, or create more income. Understand, you are not alone. Millions of American are battling credit card debt and many are getting out of debt as well. You can too.
