How to Get Out of Credit Card Debt: 10 Tips and Tricks To Get Credit Card

How to Get Out of Credit Card Debt: 10 Tricks To Get Credit Card

 

Credit card debt can be an overwhelming burden – the high interest rates make balances swell quickly. You feel trapped in debt without a clear path out. However, with the right plan and discipline, you can pay off credit cards faster than you may think and finally gain financial independence.

 

In this comprehensive guide, we offer actionable tips and strategies using the proven debt payoff methods that have succeeded for others. By applying even a few of the approaches below, tailored to your unique situation, you can effectively get out of credit card debt for good:

Step 1: First You need to Access Credit Card Debt Situation

 

Before diving into payoff tactics, you need full clarity regarding the specifics amounts owed across your credit card balances. Pull up your most recent statements and gather these details:

 

  • List all credit cards with balances, highest interest rate cards first
  • Balance owed on each card
  • Interest rates charged on each card (APR)
  • Whether the balance is on an introductory promotional rate
  • Minimum monthly payment on each card
  • Payment due dates for each card statement

 

Understanding precisely how much high-interest debt you truly have will motivate the payoff push.

Step 2: Reduce Interest Charges Through Balance Transfers 

 

The hefty interest rates are what make credit card debt so tricky to payoff. You can lighten this interest burden through balance transfer cards offering:

 

  • 0% intro APR for 12-21 months on transferred debt
  • Small 3-5% fee on the transfer amount
  • For people with good credit scores  

 

The key is transferring existing balances to the 0% card without adding any additional purchases. This pause on interest accumulation will allow much more money to go directly toward paying down principal balances each month. Just be sure to pay off the entire transferred amount before the intro period expires to avoid deferred interest charges.

 

Savvy sequential balance transferring between cards can dramatically accelerate payoff timeframes.

Step 3: Stop All New Credit Card Charges 

 

It seems obvious, but the quickest way to end up right back in growing credit card debt is by continuing to charge all kinds of purchases while attempting to pay off old purchases. The balances will creep right back up.

 

Commit to charging absolutely nothing else to **any** of your credit cards until they are all paid off. The temporary inconvenience is well worth finally reaching a $0 balance!

 

Going forward after paying them off entirely, you can potentially use credit cards again responsibly for convenience/rewards by paying in full each month. But during payoff mode, not another cent should be added! 

Step 4: Build an Emergency Savings Fund

 

Before throwing all available money toward cards, first build a $500 – $1000 emergency fund savings account as a temporary precaution (if you don’t already have savings).

 

This allows flexibility to pay for unexpected expenses in the future using cash rather than swiping plastic and reversing your debt payoff progress. Plus, savings funds prevent you from needing to rely on credit cards down the road after becoming debt free.  

Step 5: Funnel All Available Money Toward Your Highest Interest Credit Card

 

The proven debt payoff strategy known as the “debt avalanche” method prioritizes putting any extra monthly cash flow toward whichever of your credit card debts charges the highest interest rate.

How it works:  

 

  • Make minimum payments on all cards to stay current
  • On highest APR card, pay as much additional excess money as possible directly toward the balance
  • Repeat monthly until the highest interest card is fully paid off
  • Move to the card with next highest rate and repeat the process

 

This debt snowball technique minimizes costly interest fees over time compared to other methods so more money goes straight to debt principal reduction. Stick with it!

Step 6: Increase Your Income For Faster Payoff

 

Beyond cutting expenses, the other half of speeding up payment is boosting the income side of things. Funnel that extra earning power directly at debts! Ideas for making more money include:

 

  • Ask about overtime hours at your current job
  • Find a seasonal part-time job for supplemental income  
  • Develop skills for lucrative side hustles like freelance writing or web design
  • Sell unused items around the house you no longer need
  • Rent out extra space in your home to a tenant

 

Even an extra $200-500 (16000-40000 Inr) per month from those sources applied toward credit card balances makes a big difference.

Step 7:  Create An Aggressive Debt Repayment Budget 

 

One of the pillars for successful debt elimination is developing a lean, aggressive monthly budget built around splurging as little as possible across any spending categories unrelated to paying minimum card payments.

 

Examining spending closely produces surprising areas ripe for cuts:

 

  • Eat out only 2x per month, brown bag other days
  • Call cable/internet/cell providers to negotiate lower rates 
  • Cancel unused monthly subscriptions  
  • Walk/bike instead of paying for gas and parking
  • Host potlucks with friends rather than going to bars
  • Check out library books/DVDs instead of buying
  • Trade DIY haircuts with friends

 

Finding an extra few hundred dollars each month really accelerates payoff timetables. Think lean temporarily! 

Step 8: Increase Monthly Credit Card Payments 

 

As you secure raises at work, tax refund checks, and miscellaneous influxes of cash – immediately put that extra money directly toward amplifying the monthly payments on your credit card balances.  

 

Even an extra $100 per month, every month, pays off several thousands dollars in high interest credit card debt years sooner. Automate bigger fixed payments if possible.

Step 9: Pay Minimums on Lower Interest Cards First 

 

If you have multiple cards charging relatively low interest rates under 10%, consider temporarily paying minimums on those cards so the full intensity of payments tackles the expensive 20%+ APR cards quicker.  

 

Just ensure you finish paying the temporary minimized cards before low introductory rate promotions expire to avoid deferred interest surprises.

Step 10: Reward Yourself As Debt Balances Decline

 

Pursuing complete credit card payoff requires sustained focus and sacrifice. But don’t neglect to celebrate important milestones along the way!

 

As the overall debt total drops by $5k, $10k or more, be sure to enjoy a nice dinner out, spa trip, new book, etc. Positive reinforcement builds momentum to keep charging forward debt free.

 

Within just 12-24 focused months, you can join the ranks of those with paid off credit card balances! It just takes commitment and a tactical approach tailored to your financial situation. No more wasting money on interest – everything you earn is yours to control. Here’s to financial freedom!

Extra Credit Card Payoff Tips:

 

  • Check your credit card statements routinely for incorrectly charged fees or services. Request timely refunds!  
  • Consider calling your credit card company to request a lowered interest rate. If declined, you can threaten to transfer the balance away to a new card.
  • Be disciplined about cutting up old credit cards as you finish paying them off completely to avoid future temptation.  
  • Towards the tail end of paying a card to zero, consider making payments every 2 weeks instead of monthly to fit in an extra yearly payment. This pays off debt several weeks faster. 
  • Find an accountability partner like a significant other or close friend to celebrate payoff milestones with and keep you on track avoiding unnecessary spending. Debt freedom journey is more fun with two!

 

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