Credit card debt can be overwhelming, but with dedication and good financial habits, it’s possible to pay off your credit card debt faster than you think.
A credit consolidation loan allows you to pay off and combine multiple credit cards. Rather than dealing with multiple payments and deadlines, you can combine everything into one simple monthly payment. However, for faster debt repayment, try biweekly payments (you’ll make 2 extra payments a year compared to semi-monthly). Either way, a credit card consolidation gives you a structured repayment schedule helping you stay on track and in control. Credit card consolidation is not a completely easy process.
Tip: Choosing a secured loan for debt consolidation can help you access lower interest rates, ultimately helping you pay off your credit card debt faster.
You’ll never pay off your credit cards if you keep racking up a balance. Plus, the only way to truly get out of debt for good is to change the spending habits that created debt in the first place. Start by taking your credit cards out of your wallet so you’re not easily tempted. If you need extra accountability, ask a trusted friend or family member to hold on to them. Avoid closing your credit card unless absolutely necessary, since it could affect your credit utilization and ultimately impact your credit score (learn more on credit use here).
Find opportunities to earn more money – ask your boss if you can work overtime, get a part-time job or ask friends or family if they need help with chores in exchange for a fee. Then, dedicate all of your extra income to debt repayment, to make the most effective use of your budget.
First, pick a date that you would like to be debt-free. Then work backward to see how much you need to pay each month to reach that date (this calculator tool can help). The longer you take to pay off your credit card, the more affordable your payments will be and vice versa. Make adjustments until you find the right balance between affordable payments and a realistic timeframe. If you struggle to keep yourself accountable to a payment schedule, consider a consolidation loan.
We recommend setting up automated payments that go toward your credit card balance on the day you get paid. You won’t have an opportunity to notice the money in your account, and over time you’ll learn to adjust to the lower balance in your bank account on payday.
There’s a reason why athletes visualize themselves winning – it really works! Make a drawing of a thermometer with your goal repayment at the top, zero at the bottom and fill it in as you contribute. Get as creative as you want, and look at it often to keep yourself motivated (Thanks to one of our social media followers who submitted this tip during our Best. Money Tip. Ever. Contest).
Some annual credit card fees can be hundreds of dollars – that’s a lot of extra money added to your balance every year. Is the fee really worth the rewards you receive in return? For many, it’s not. Consider researching new credit card options that still offer rewards but for a lower cost.
Paying off your credit card balance is a great step toward a better financial future. However, if you don’t learn how to use your credit card responsibly, you’ll end up back where you started. Looking for money management tips? You’re in the right spot – check out our other blog articles for budgeting advice, money-saving tips and more!
Paying down credit card debt may seem daunting, but it’s not impossible. It’s okay to take small breaks from debt repayment (if needed), and don’t forget to celebrate your milestones. Treat yourself to a coffee, or another small purchase for every $ 1,000 you pay off.
Interested in consolidating credit card debt? Try our online loan quote to see if a debt consolidation loan is right for you. You can find out how much money you could qualify for and what your payments might be. It’s quick and won’t impact your credit score.