With the cost of living on the rise, more people find
themselves trapped in a cycle of credit card debt. Scrapping by on minimum
monthly payments is getting you nowhere. The high-interest rates make it
impossible to gain any real progress by making the minimum payment only.
There are a few ways to work your way out of credit card
debt faster.
1. Stop using your cards altogether.
While this might seem impossible, you will never pay off a
card you are still using — the cycle of making payments only to recharge that
amount throughout the month yields no results.
Instead of cutting up your cards, stop using them for a set
period. That way, once you have repaid the balance, you still have access to
your credit in the future.
2. Limit yourself to one credit card only.
By using only one card, you won't be spending over your
limits and should always be able to manage repayment. Whereas, if you have two
or more credit cards, the payments could cut into your quality of life, which
is why many people only make the minimums.
3. Ask to have your interest rates lowered.
While this request won't always be obliged, some lenders are
happy to work with you to make it easier to pay off your balance. If you're a
student, creditors usually offer specialized credit solutions with lower
interest rates. Even if you aren't in school, there's no harm in reaching out
to see what options are available to you.
4. Make extra income on the side.
No matter if you already have a full-time position, there
are ways to make extra money on the side to expedite your repayment. Consider
selling unused clothing or electronics and using the profits to pay off your
credit card debt. Or, you could offer your services on Craigslist, like house
cleaning or babysitting.
