Ben Squires
Money & Banking

7 tips to help eliminate credit card debt

On the list of things you would like to have, credit card debt probably ranks VERY low.

Here are some handy tips and tricks to help you get rid of credit card debt and inch closer to financial freedom.

1. Examine your debts

It can be difficult to understand the scope of your debt if you haven’t develop a sense of the size and scope of your problem. By examining your debts you can be sure you know how big the problem is and what part of your finances require the most alarming attention.

2. Make a budget

The only way out of credit card debt is making a budget and sticking to it. Limit your spending to the necessities and make sure you have enough left over to implement a payment strategy that is workable. Making a budget and sticking to it is the most important thing you can do.

3. Destroy your cards

If you’ve got a spending problem one solution is to eliminate the cause entirely. By destroying your credit cards you get rid of the tool to purchase and can focus energy on repaying your debt. 

4. Make a payment strategy

Always put as much money as you can every month towards your credit card debts and if you don’t feel as though you’re making any headway, consider ramping up to weekly repayments.

5. Stay in contact with your creditors

Make sure they know you’re serious about paying off the debt as fast as you can. Even things like making them aware of your budget and action plan can help prove that you’re committed.

6. Consolidate your debts

If you’ve found yourself with multiple debts consider the option of consolidating them into one loam or credit card account and simplify your debt management process considerably.

7. Credit counselling

If all else fails, consider seeking assistance or counselling from a qualified financial planner. They’ll be able to give you support and advice which can help you through the troubled times.

Related links:

Excuses, excuses! Facing up to why we fail with money

10 quotes that show money isn’t everything

10 apps to help you budget this year

Tags:
finances, banking, credit card, money, debt