Crush Your Debt With These 8 Tricks

crush your debt

There is an overwhelming urge to swipe here and now when you own a credit card. It’s like you finally earned the status of financial freedom, only to receive a long list of bill for many unnecessary and lifestyle-driven purchases. If you’ve seen the movie “Confessions of a Shopaholic”, you will understand the spiral down fall of a person due to credit card debt.

Credit card debt is overwhelming, often stressful situation to experience. It can affect many aspects of your life. Attempting to retire your credit card debt is quite challenging especially if you are already living on a strict budget. If only you can change your identity and walk away from it. But to solve it is very feasible, even on limited budget. Practice these eight helpful tips, and you will see yourself walking out of your debt.

Negotiate Your Rate

One effective way to immediately reduce your credit card debt is by negotiating your rate. A polite pleading phone call to your credit card company can persuade your credit officer to lower your rate. Do take note that factors such as payment history and account standing can play a role on the final decision.

One card at a time

Solve your credit card debt one card at a time. Multiple cards means multiple debt and finding solution to pay them off at the same time is overpowering. Start off by getting rid of the card with the highest interest rate. This will save you from the fangs of the frustrating interest. Apart from a lifted financial burden, paying off one card from your stash can give you a modest boost in morale.

Make payments

Always make monthly payment, and even minimum payment is better than not paying at all. This will prevent you from accumulating interest rates. Credit card debt often started with the burden of incurred interest rate and fees from late payments.

Transfer your balance

This can be tricky but if done properly it can help you save money by preventing skyrocketing interest. If you happen to have a healthy credit card, apply a balance transfer. This will commit you to a low interest rate window which can last for a year. Make sure you are dedicated on monthly payment or else, this transfer will backfire.

Secure a loan

There are a number of loan solutions available online today. You can consider applying for a debt consolidation loan. It is a form of loan designed for paying off liabilities and consumer debts like credit card. They usually offer fixed and lower interest rates. You can apply for a big lump sum if you have a good credit standing.

Sell Unnecessary Items

A great way to increase your cash flow is by selling unnecessary items in your house. Identify items and furniture in the house that you can post and sell in online platforms like eBay or Craigslist. If you are not comfortable with online transaction then you can set up a garage sale. The additional money can be used to meet your ends and pay some of your debts.

Live within Your Budget

Reduce your living expenses by creating an organized and strict budget.  A great way to create a thought-out budget is to start from checking your debt bill statement. From there you can get an idea on how you may allocate funds for other expenses. List out your expenses and identify which one you can tweak.

Track your progress

The process of paying off your credit card debt does not have to be all about suffering and stress. Track your progress to see how you are doing. Give yourself a reward whenever you hit or met a milestone. This can encourage you to keep going and finish off all your financial liability.

 

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