Many people are looking for ways that help them getting out of credit card debt. Being trapped in a debt does not only drain one’s financial condition. It also adds physical and emotional burden to debtor’s life. Debt can hold down your movement for brighter future, such as owning assets and great career. However, steps to be independent from debt are not always easy. Time and perseverance are necessary to make sure that your efforts will be successful.
Ways to Get Out of Credit Card Debt
Here are some actions that you can do to get rid of debt caused by your own credit card.
- Making Additional Payment
Getting out of credit card debt will take a ridiculous amount of time if you keep making one minimum payment each month. The minimum payment is usually about 2% to 3% of total credit card balance. Monthly payment is charged with interest. In other words, debtor pays more when they take longer time to conclude their debt to a credit card company. Make additional payment every month according to your ability. If not, making two minimum payments each month is another way to tackle debt faster.
- Creating Debt Priority List
With limited financial resource, getting out of credit card debt cannot be done all at once. You must create priority list of your debt. Snowball method is often chosen because it lifts up the person’s morale. It means solving debt on credit card with smallest value. Another method is avalanche method, which means solving debt that has the biggest value.
- Negotiating Interest Rates
Not all credit card issuers are indifferent to your problems. They also do not want to lose valuable customers. That is why, if you have acceptable credit rating and long standing relation with your card company, you should try to lower your interest rates. Lower interest rates will help debtor getting out of credit card debt faster, not to mention reducing the debt.
- Arranging Monthly Budget
The most common cause for debt is having spending habit that does not match with current income. If you have debt, being free from it should be your goal when creating that budget. Follow budget obediently or at least do not stray too far from it to maximize the result.
- Looking for Additional Income
In addition to arrange monthly budget, looking for extra income source can aid you getting out of credit card debt. If you have hobby or skill, try to monetize it for more income. Find online part time jobs that will not meddle with your day job.
- Developing Healthy Financial Habit
Once you have reached success in getting out of credit card debt, do not fall back into similar pattern. Maintain obedience to budget and (if it is not too taxing) keep looking for extra source of income.
Perseverance is not enough to help you getting out of credit card debt. Debtor must deal with their debt smartly to solve it faster and in a more sustainable way. Try those methods and be careful of falling back into debt in the future.