If you get a large tax refund, put it towards your debt or building a savings fund. Use it to better your financial situation.
Pay less interest and pay off your debt faster by rounding up your monthly debt payments. If your car payment is $375, pay $400 instead, or more if you can! You can apply the same method to student loans, credit card bills, and your mortgage.
Opt for a balance transfer method. Transfer all your outstanding balances from a high-interest credit card to a new credit card with low-interest rate to eliminate debt. Beware of the balance transfer fees, which is often 3% to 5% of the total amount you are transferring.
Target one debt first. Pay off the minimum balance on each card first. Focus on one debt at a time. Pay off the credit card that charges the highest interest rate, or make a point to pay off the credit card with the minimal balance first.
If you are struggling to pay off your debts, then go for a debt management plan (DMP). A credit counselor reviews your income and expenses and decides a reduced amount that you have to pay each month to pay off your debt.
Pay a bit more than the minimum payment. Paying only the minimum payment will keep you in debt for a long time. So, what is the solution? Pay a bit more each month. This extra money that you pay over the minimum payment minimizes your balance, which lowers the interest rate.
Most 401(k) accounts let you borrow money up to 50%. If you have a 401(k) account you can borrow money from it to pay off your debts. Beware and proceed carefully as you are risking your retirement.
If you are really finding it difficult to pay off your debts, then you must renegotiate with your creditors. Contact your creditors and ask them for a new and lower repayment schedule. Most will be willing to work with you.
If you want to become debt free soon, then you must cut back your expenses first, especially, unnecessary spending. This may seem a bit restrictive, but remember, this’ll help you to reach your goal.
Are you carrying balances on your card from month to month? If yes, then immediately stop using your cards. Don’t pile up balances on your credit cards and avoid embracing more debts.
Drafting a perfect budget is the key tip to get rid of credit card debt. Scrutinize your credit card bills and jot down your monthly income and expenses to create a perfect budget.
If visiting a casino, only bring the amount of cash you can afford to lose. Leave any credit or debit cards at home.