If you have credit card debt you’re far from out of the ordinary, as the majority of credit card users are likely to find themselves in a substantial amount of debt at some point in their lives.
In fact, according to Federal Reserve, the average credit card debt per household in the US 2012 was over $15,000.
However, as you probably know all too well, credit card debt can be extremely stressful, leaving borrowers wondering how they’ll ever be able to pay it all off. Fortunately, paying off your credit card debt can often be easily achieved if you’re willing to make certain financial sacrifices and make a realistic debt repayment plan.
To help you in your quest to be debt free, here are 5 tips for getting out of credit card debt this year:
- Stop Skipping Payments
The more you skip your payments, the faster your interest rate will increase, the more fees and penalties you’ll be charged and the quicker your credit score will plummet. Even if you can only make the minimum payment some months, make sure you still do this as skipping payments will only lead to more debt mounting and an overall credit card debt problem that will take even longer to get out of.
- Make a Repayment Plan
Look at your finances and see how fast you can realistically expect to become debt free by.
Once you have an estimated set date, make a repayment plan that states how you will repay your debt on a month-by-month basis. Print this plan out and stick it somewhere you will see often, such as on your kitchen fridge, as a daily reminder that this is what you need to do in order to no longer have credit card debt.
- Adjust Your Lifestyle
Unless your credit card debt is due to having to pay for an unforeseen emergency, the chances are your debt is direct result of living beyond your means. Either way, you will still need to adjust and ultimately downsize your lifestyle in order to make way for more funds that you can put toward paying off your credit card. Look at your monthly expenses and see where and what you can cut back on. No one said paying off credit card debt is easy, so definitely be prepared to make some financial sacrifices in order to reach your goal of being credit card debt free.
- Try to Increase Your Income
If your credit card debt is big enough to the extent that you simply don’t have high enough earnings to even make a dent in paying it off, you may want to consider finding extra ways to boost your income. Perhaps you could ask for extra shifts or hours at work, take on a second job or do some kind of freelance work. Whatever type of work you decide to take on, the boosted income could really help you pay off your credit card much sooner and without having to put an unbearable strain on your finances.
- Consider Transferring Your Debt
Do you have credit card debt spread over multiple cards? If so, then you may want to transfer it all onto the card you have that has the lowest interest rate. This way you can not only put your debt all into one place (which could make it much easier to manage) but also will mean you’ll be charged less interest overall. Contact your credit card company directly to see how this can be arranged.
Becoming free of credit card debt doesn’t have to be a daydream. It can definitely become a reality if you use our above tips to help you get out of credit card debt and back on to the road of financial recovery. Good luck!