If you find that you have more credit card debt than you would like, you know it’s time to start making more of an effort to pay then off. Getting out of debt will be a great feeling, but many people feel intimidated when it comes to their debt. They see how much it is and don’t think they can ever chip away at that mountain. With some perseverance, a bit of sacrifice, and the right tips, it will be possible to make your debt nothing more than a bad memory. The following are a couple of ways to pay off your debt the right way.
More than Minimum Amount
Many people simply pay the minimum each month. This is a bad idea for a couple of reasons. First, it will take forever to pay down the debt, and that means that the interest rates are going to continue to compound. Always try to pay more than the minimum – as much as you can. Try to find the money to pay extra by sacrificing some of the things that you are buying and don’t need.
For example, if you have a minimum payment of $100 a month on a card, consider cutting out your morning coffee at Starbucks. If you are spending $4 on average a day during the week, that’s an additional $80 right there. Use that additional money to pay down your debt much faster. You can find other ways to save money for your bills, too, such as eating at home instead of eating out or getting Netflix instead of having cable.
Transfer the Balance
If you have a credit card that doesn’t have much on it and that has a lower balance than your other cards, consider trying to shift the balance on those higher cards to the one with the lower rate. There might be fees involved with the transfer, but this should still be able to help you save more money in the end. Just make sure you do the math to make sure that the fees don’t negate the benefit of the transfer.