How To Get Out Of Credit Card Debt

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How to Get Out of Credit Card Debt

Credit card debt is no joke and nothing to mess around with. Many people who get into credit card debt struggle to get out of it; this is largely due to high interest rates that quickly accumulate on a daily basis. As a matter of fact, it is not uncommon for folks to end up paying down interest for years on end before they even reach the original debt. 

According to Psychology Today, people tend to spend much more money with credit cards than they do with cash. As you can imagine, this exponentially increases the likelihood of someone going into credit card debt and having a tough go at getting out of it. 

It is no secret that credit card debt can have crippling impacts on a person’s financial health along with their mental and emotional wellbeing. Thankfully, online counseling can be of great help to people who are struggling with anxiety as a result of credit card debt. 

The one silver lining to credit card debt is the many ways that exist to get out of it. Keep reading to learn all about how you can permanently put credit card debt behind you.

Seven Ways To Get Out Of Credit Card Debt

When it comes to credit card debt, prevention is always better than damage control. However, if you are someone who struggles with credit card debt, then the following tips and tricks can certainly be of value to you. 

See if You Can Consolidate Your Debt

One of the worst things about credit card debt is the accumulating interest. Growing interest makes it really tough to get out of credit card debt which is why debt consolidation can make such a huge difference. 

The best way to consolidate your debt is by seeing if you qualify for a transfer credit card with a 0% balance. Credit cards with 0% introductory periods lasting anywhere from nine months to 18 months are a great starting point; see if you can qualify for this card and then transfer your debt onto the card. Debt consolidation in this manner will allow you to chip away at your debt with monthly payments and without crippling interest.

Cut Back on Your Spending

Overspending is a common reason why many people get into credit card debt and remain stuck in it. However, when you’re facing credit card debt, paying it down so you can become debt free is the ultimate goal. 

When you cut back on your spending, you will inevitably have more money that you can use to pay down your credit card balance. Every single payment will bring you one step closer to being debt free. 

Some great ways to cut back on spending include canceling unnecessary subscriptions, going out less often, and otherwise reviewing your budget to see whether you’re spending more money than you absolutely need to. 

Increase Your Earnings

Similarly to cutting back on spending, increasing your earnings is another stellar way to get out of credit card debt. With more income, you’ll be able to make more payments towards your credit card balance and get out of debt. 

Thankfully, there are many ways to increase your earnings in 2021. Seeing if you can take on more hours at work is always an option; likewise, looking into freelance work, Uber/Lyft driving, delivery for apps like Instacart, DoorDash, Postmates, UberEats, etc., are also great ways to increase your earnings. 

See if You’re Eligible for a Lower Interest Rate

Believe it or not, getting a lower interest rate on your credit card debt may be possible if you have a good credit score. 

The best way to find out if you’re eligible for a lower interest rate is to make a phone call to your creditor. There are no guarantees; however, if you’re a customer who’s been with the company for a good while and regularly makes on-time payments, your creditor may be willing to work with you. 

A lower interest rate can make it significantly easier to pay off your credit card debt in less time. In the long run, this will save you money as you work to become debt-free. 

Sit Down with a Credit Counselor 

Depending on the amount of your credit card debt and your overall financial situation, getting a credit consultation for a debt management plan may be a good idea. With a program of this nature, you’ll receive payment strategies that are specifically tailored to your financial situation. 

If you are not eligible for debt consolidation, then sitting down with a credit counselor comes highly recommended. As you make more payments to your credit card debt, the likelihood of your credit score improving goes up. Therefore, you may become eligible for debt consolidation later down the line. 

Pay More Than Just the Monthly Minimum 

Credit card debt is no fun and having to continuously make payments can seem like a hassle. Nevertheless, as you work to get out of credit card debt, it is deeply imperative for you to pay more than just the monthly minimum. 

Making credit card payments that exceed the monthly minimum ensures that you don’t drag out the period of time that you remain in debt. Furthermore, paying more than just the monthly minimum reduces the amount of interest that you will have to pay on top of your debt. 

Put Together a New Budget

Getting out of credit card debt will undoubtedly require you to make certain changes in how you’re handling and spending money. For this reason, putting together a new budget that takes into account your regular debt payments is a good idea. 

Once you have a new budget put in place, paying off credit card debt becomes much less disruptive to your other financial responsibilities. This is critical to being able to consistently make payments. Without a new budget that includes payments to get out of credit card debt, staying on track becomes much more challenging. 

Getting out of credit card debt isn’t always easy; however with the right tools and knowledge at your disposal, you can begin your journey towards a debt-free life.