Posted by Tiffany Gaskin

Tested Ways to Beat Credit Card Debts

Tested Ways to Beat Credit Card Debts

One of the greatest sources of financial burden for most Americans is credit card debt. It is pretty prevalent in all households and affects both the men and women folk. 

However, it is possible to conquer credit card debt with tips from the experts, and here are some of the recommendations.


  1. Consider Your Credit Card Debt

Experts recommend sitting and getting accustomed to your debt for a while as it can go a long way to make you debt-free. 

This involves examining the circumstance and the habits that plunged you into such debt. It could be a medical emergency or a practice for swiping without giving it much thought. 

So take some time to consider your entire credit card debt alongside the APRs on each of such debt and the associated fees as well. With this, you can come up with a plan for reducing such debt.


  1. Ditch the Credit Cards

Your probability of getting off the credit card debt is zero if you keep up with the card. As an alternative, consider using cash or debit. With this, you won’t have to deal with the temptation of spending money you do not have

While a cash-only spending habit requires more commitment, it can pave your way to financial freedom. A debit card might be the best for you, as interest on a credit card could quickly sink you into debt.

 

  1. Have a Method and Commit to it

Your decision to get out of credit card debt is not only about wishful thinking but taking action. 

As a result, make sure to commit to the method you chose to get out of debt when you chose it. This involves intense discipline, dedication, and doggedness as you have to let go of many things.

 

  1. Negotiate Your Interest Rates

One tactic many people overlook when it comes to beating your credit card debt is negotiating the interest. But, unknown to many, you can call the credit card company and negotiate the interest. 

Assume that you have on your card a balance of $7,000, and your APR at the moment is 15%. When you are paying just the minimum payment, you will need six years to get the debt off, and your interest will amount to more than $4000. Here are two essential things to keep in mind:

  • Paying the minimum amount on your credit card is not a good idea

  • Compound interest could incredibly help you or be your undoing. This is a matter of who pays. 

Again, assuming you negotiate your debt and you were able to beat your APR down, the entire interest you will be paying will be around $1,500. All you need is persistence and a polite call.


  1. Reduce Expenses 

A commitment to debt reduction is a huge one that needs total dedication. This involves a genuine evaluation of your needs and wants. Unfortunately, many people deceive themselves with needs like a trip to Hawaii, the latest iPhone, a membership at the gym, and many others. 

These habits, however, end up sabotaging our finances, preventing us from achieving our goals. So, ensure you are honest with yourself and cut them one after the other. 

Getting rid of such ‘needs’ does not have to be a lifetime commitment, but it can help achieve your goal of beating the credit card debt. 

Consider getting a side hustle as well; it can fast track your journey to becoming debt-free and even reward you with extra cash when you eventually get rid of the debt. 

Side hustles come in many forms, like attempting a freelance job, lending an extra room in your house to guests, or having a garage sale disposing of all your old things.


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Tiffany Gaskin
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