How to Pay Off Your Credit Card Debt Faster
Credit cards make it all too easy to accumulate debt. Purchases add up quickly, and high credit limits tempt you to overspend. The minimum payment lulls you into a false sense of security. Several thousand dollars of credit card debt doesn’t seem so bad when the minimum payment is very affordable.
The problem with that is when you only pay the minimum payment on your credit card, you are barely doing more than treading water. Even a small balance can take 5 to 10 years to pay off when you only pay the minimum each month. Larger balances could even take 15 to 20 years. As you start to pay off the balance, the minimum payment decreases to further slow your progress.
The other issue is the interest you will be paying as long as you maintain a balance on the card. When only paying the minimum payment, you will likely end up spending more than double the amount of the original balance to pay it off. If you don’t want this debt hanging over your head, it’s time to develop a plan of action. By following this simple three-step process, you’ll see real results in no time:
3 Steps to Pay Off Credit Card Debt
Step 1: Determine a Realistic Amount to Pay Each Month
The first step to paying off your credit card debt is determining how much you can afford to pay toward the balance every month. The higher the monthly payment, the faster you will be able to get out of debt. It’s important not to stretch yourself too thin, however. You want to stick to a reasonable amount you will be able to pay consistently.
Step 2: Stop Using the Card
Step 3: Pay Extra Whenever Possible
Once you have decided to pay off your credit card debt, you need to stop using the card. It can be tempting to justify a purchase, especially once you start seeing the balance owed on the card decrease. However, every dollar you spend sets you back from your ultimate goal. Some people find it easier to ignore the temptation by storing the card in a difficult-to-access location. This will give you reason to reconsider before you use the card.
While you never want to pay below your budgeted amount each month, that doesn’t mean you can’t pay more. Whenever you have extra cash, use it to lower your credit card balance further. Even a little bit of extra money can make a big impact. Are you ready to get out of credit card debt? Contact us today at 888-456-2227 to speak with a debt management counselor. We will work with you to establish a monthly payment that is manageable.