Debt is never fun, but it’s especially painful when it’s in the form of credit card debt. According to a recent Federal Reserve Survey of Consumer Finances report, the average American household owes more than $6,000 in credit card debt. That’s a lot of debt! And with high-interest rates and minimum payments, it can feel like you’re stuck in a never-ending cycle of debt.
But there is good news! There are ways to pay off your credit card debt sooner than you might think. Here are a few tips to help you get started. Let’s jump right in.
Make a Budget
If you’re uncertain where your money is going each month, it’s time to make a budget. When you have a budget, you can track your spending and ensure you’re putting enough towards your debt each month. This will enable you to pay off your debt and keep you out of debt in the future.
Build Up Your Emergency Fund
Emergencies do occur, and they can be costly. That’s why it’s important to have an emergency fund to fall back on. If you don’t have one, start setting aside money now. Setting aside this money will give you peace of mind and help you avoid putting unexpected expenses on your credit card.
Make More Than the Minimum Payment
Your credit card debt will take longer to pay off if you merely make the minimum payment each month. That’s because the minimum payment usually only covers the interest, not the principal. So, if you want to get out of debt sooner, ensure you’re paying more than the minimum monthly payment.
Consider a Debt Consolidation Loan
If you have multiple high-balance credit cards, you might want to look into getting a debt consolidation loan through a company like Symple Lending. This type of loan allows you to roll multiple debts into one monthly payment at a lower interest rate, potentially saving you money and helping you get out of debt faster.
Consider a Balance Transfer
If your credit score is high, you may be able to transfer your balance to a credit card with a lower interest rate. This helps save you money on interest in the long run and helps you get out of debt faster.
Although it may not be the most fun thing, paying off your credit card debt is ultimately worth it. You’ll save money on interest and feel better about your financial situation. A debt consolidation plan from Symple Lending is a great starting point. So make a plan and start chipping away at that debt!