Credit cards are irresistible, especially when you’re a fashionista just waiting to get your hands on the best deals in town. Sadly, there isn’t a magical fairy out there who’ll wave a magic wand to help you get out of credit card debt. You have to earn what you want, and with commitment and wise choices will you make credit card debt go away.
Here are eight tips to help you settle your credit card debt.
1. Don’t cancel or cut up your cards
After overcharging your credit card, you may feel like cutting up or shredding your cards in a fit of frustration so that you’re safe from spending it again to get deeper in debt. Although that sounds like a reasonable excuse, you won’t have accdess to your card in the event of a real emergency.
2. Stop spending
If you’re absolutely serious about getting out of credit card debt, it’s time to put a freeze on your shopping. Don’t fall into temptation of using the “just one more time” excuse because we all know that never gets you anywhere. Leave your credit card at home when you’re going out, and only take it when you really need it.
3. Devise a budget
To get out of credit card debt, you must set up a budget and stick closely to it. When drawing up your budget, decide on what you must spend first like groceries, rent, utilities, travel expenses, bills, loans, etc. Save up a certain amount of each month’s earnings to go into an emergency savings account, and then budget an amount for entertainment or shopping. [Style on a Budget: 10 Chic & Cheap Tips]
4. Pay off the debt you owe the least
If you have more than one credit card, or a loan chewing away your hard-earned money, concentrate on paying off the debt you owe the least on. Using this strategy works because it lets you see quick results from your efforts. Once you see your small debts get paid off fast, you can feel as if you’re accomplishing something.
5. Count every penny you spend
Learn to save a ringgit in every way possible. Every single dime you save will easily help you get out of credit card debt faster as you’re training yourself to take that extra money to put it towards a payment. Start collecting coupons for groceries, skip extra frills like lattes, trips to the beauty salon, and learn to bargain shop for necessities!
6. Get a second job
If you’re really serious about settling off your credit card debt without having to scrounge desperately for food, you may want to consider getting a part-time job and dedicate all you earn to your credit card payments.
7. Pay more than the minimum payment amount
Try to pay 5 – 10% more of the minimum payment amount as you’ll be paying off your debt faster, and your interest rate will low too.
8. Don’t pay your bills late
With the help of a budget, learn to prioritize important payments first, including your credit card debt. Paying your bills late could leave you with late payment fees and the extra charges will only make your debt settling journey a harder one.
