Between student loans, mortgages, and auto loans, being in a certain amount of debt is normal and virtually unavoidable. In fact, the average American is over $90,000 in debt, including $5,000 of credit card debt.
It’s no secret that life can get expensive, and with all the bills and loans to pay, it’s easy to rack up more than the typical amount of debt on your credit cards. And when the number on your credit card statement reaches terrifying heights, it can feel like there’s no way out.
But take a deep breath, because no matter how high the number gets, it’s possible to get rid of credit card debt! To find out how to cut down on your debt, just keep reading.
Make a Payment Strategy
No goal can be achieved without a solid plan. With that in mind, you can’t approach ridding yourself of your unpaid credit card debt without a payment strategy.
There are a few different options here. The first is simple: always pay more than the minimum. Your bank likely requires a 2-3% minimum payment each month, but you should exceed this number if possible and instead pay as much as you can afford.
There’s also the debt snowball and debt avalanche. With both of these strategies, you first need to list your loans in order of amount.
If you go with a debt snowball, you would focus on paying off the smallest loan first, then working up to the largest one. Rather than trying to pay them all at once, you tackle one at a time.
A debt avalanche is the better option if you can afford it. With this technique, you work from the largest to the smallest. This costs less in the long run, as interest is higher on larger loans.
Reach Out for Help
If you’re in too much credit card debt to afford the monthly payments, it’s time to reach out for help. There’s nothing wrong with declaring bankruptcy or contacting this loan consolidation company if you need it.
The first step, however, is to contact your creditors. They might be able to help you create an affordable payment plan or allow you to enroll in a program that temporarily suspends your fees and lowers your interest.
If that isn’t an option, consider a credit counseling agency or hiring a debt settlement company. A debt settlement involves negotiating with creditors to accept less than you owe, while a credit counseling agency can help you consolidate your debt.
These options come with risks, but it might be worth it to get rid of a large credit card debt.
Take Steps to Eliminate Your Credit Card Debt Today
Being in a large amount of credit card debt can be a frightening experience. Remember, however, that there’s always a way out.
Yes, it might take some time and penny-pinching, but you’ll thank yourself for the effort when you’re able to breathe easy knowing your credit card bill is manageable once more.
Looking for more tips for building financial stability? Be sure to check out our blog!