When you have debt, specifically credit card debt, you’re likely paying high interest. Obviously that’s not a secret because it’s how credit card companies make their money.
If you’re trying to pay off debt, however, that’s some of the first debt you should try to pay off. Once again, not a secret since paying high interest means giving away more of your hard earned money.
What you might not know is how to quickly pay off credit card debt. Unfortunately, it’s easier said than done. But if you really want to turn your finances around and get out of debt, it can be done. Here are some ways you can quickly pay credit card debt.
Stop Using Your Credit Cards
The first step to getting your credit cards paid off is to stop using them. It’s probably not going to be easy. Still, you have to quit running up credit card balances so you can get them paid off.
Close the accounts and cut them up. Or, lock them up in a drawer. Freeze them in a block of ice in your freezer if you have to. Do whatever it takes to keep from using your credit cards.
Pay Off One Card at a Time
Throw every bit of money you can at one of your credit cards to get it paid off fast. Make minimum payments on all of the other credit card balances. This lets you get one card paid off faster. Then you can concentrate on the next one and so on until all are paid off.
Call Your Creditors
Try calling your credit card company to see if you can the balances lowered in some way. Even if you don’t like asking for special treatment, taking the time to plead your case could pay off. You may get hundreds or even thousands taken off your bill just because you asked.
In addition, call on other bills you owe. Utility bills, cable, phone, hospital, and others are known to negotiate from time to time. A few minutes of your time in a simple conversation could save you a ton of money.
Utilize a Cash Windfall
If you receive a cash windfall, even if it’s a small one, don’t blow it on more stuff. Instead, use it to pay credit card debt. It’ll help you make faster progress toward your goal of financial freedom.
Use Extra Monthly Income
Even if your credit card debt is significant, every cent you can pay on it gets you out of debt faster. Therefore, the more money you can throw at your debt, the better.
Have you set up automated payments to your credit card company? You can still pay extra each month to get your debt paid faster. In addition, every dollar you pay above the interest each month will lower your future interest payments.
Take On a Temporary Side Hustle
To keep debt from taking over, consider taking on a second job, even if it’s only for a little while. You can work part-time instead of full-time or maybe even work from home.
Look for a job that plays to your strengths or is quite a bit different from your regular job. That allows you to switch gears and not get burnt out doing the same thing all the time.
Apply Additional Money from a Raise
Annual raises are another good way to pay credit card debt of faster. Whenever you get a raise, use the extra money to pay off high interest credit card debt. That’s a better way to use it than buying other things because it will help you achieve financial freedom sooner.
Pay Using a Tax Refund
If you usually get a tax refund, don’t use it to buy something “extra” or take a vacation. A better use for it is in paying off credit card debt.
Need an action you can take now to get rid of credit card debt? Have a no spend month (or two) and apply every bit of money you can toward your credit card balances.
Make Payments Every Two Weeks
Call your credit card company and see if you can pay them every two weeks instead of once per month. Paying them every two weeks means you’ll be making 26 payments since there are 52 weeks in a year. In effect, you’ll end up paying one full month extra than if you’d have paid monthly.
As you can see, there are lots of things you can do to quickly pay credit card debt. If you want to achieve true financial freedom, don’t wait. Start the process of getting out of debt for good, today.
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What steps are you taking to quickly pay credit card debt?
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