Credit Cards can be one of the fastest ways to dig yourself into a deep financial hole. Trust me. I’ve been there. Having multiple credit cards with huge balances can be a bit overwhelming. High interest rates and charges might seem like you’re putting out a fire and it will never end.
First. take a deep breath. Focus on creating an effective game plan and execute like a boss.
My first effective method is Debt snowball. So many folks are finding success with this method. This method was introduced by financial expert Dave Ramsey. Here’s how it works: You list all of your debts from smallest to largest. You then devote extra money each month to paying off the smallest debt first; you make only minimum monthly payments on the others. When the first balance is paid off , you move on to the next smallest.
Example:
Credit Card #1 has a balance of $1800
Credit Card #2 balance $800
Credit Card #3 balance is $2400
The strategy is to pay off the smallest card first but also paying attention to the other 2 cards. For example, I would pay more than the minimum for card #2 with a balance of $800. Lets say the minimum is $40 due. I would pay $100. Then, pay the minimum of the other 2 cards. Now, I finally paid off card #2. I will work my way to the next card with smaller balance; Card #1 with $1800 balance. I’ll pay way more than the minimum, then pay the minimum for the last card. The key is to destroy the smallest balance card fast and put out the other fires.
Another method: Cancel inactive subscription
By canceling inactive subscriptions, you will find yourself with more money in your pocket. Use that money to put towards your credit card balance.
Every time you get paid or money hit your bank account, move money towards the balances. Micro- payments can speed up the process as well.
Get a side job or business:
Create more streams of income to pay off more debt. You can never have enough money.
Call your credit card company:
Yes! If you are struggling to pay your cards, call the company and see if you qualify for lower payments and interest works. Communication is key. It never hurts to call.
I can’t lie. Credit card debt can be a beast. Do not get discouraged. I’ve seen plenty of folks defeat thousands of dollars of credit card debt. If they can do it, so can you. Get focused and make some sacrifices. With faith and hard work, you can put this debt behind you. It is time to become debt-free.
