13 Apr 13 Tips to Get Out of Credit Card Debt
Credit card debt affects the majority of people across the nation, and credit card companies love to target young women with credit card deals, dragging many into debt before they turn 21. With all of these tricks that are targeted toward young women, how are we supposed to get out of the debt that accumulates? If you’re struggling to pay back your credit card debt, here are a few tips and tricks that can help.
1. Make a Budget.
First and foremost, make a budget for yourself. You can find yourself in credit card debt for many different reasons, especially if you’re a young adult. Things like deposits on apartments and college textbooks can be expensive! One quick way to evaluate your spending habits is to make a budget. Simply add up what you’re making every month and what your expenses are every month. From there, you can see how much money is left over, and you can pay a set amount every month to your credit card company. Don’t forget to leave room for play too! Studies have shown that if you don’t give yourself some spending money monthly then you’re more likely to break your budget.
2. Figure out Your Temptations.
If you’re someone who has entered into credit card debt because of overspending, figure out what tempts you when you’re out. If you know that going into Ulta is going to cause you to want to spend money, don’t go to Ulta. The same thing applies to whatever tempts you, whether it’s clothes, makeup, or video games! Even if you do go, put distance between yourself and your card. Keep your credit card at home or hidden in your car.
3. Pay off Your Highest Interest Rate Amounts First.
If you’ve found yourself with multiple credit cards, make sure you pay off the one with the highest interest rate first. One major downfall of having credit card debt is having to pay the interest that goes along with it. If you’re making payments monthly, sometimes it can be hard to see any progress if your interest fee is as much as your payment is. Go ahead and pay the minimum amount on your other cards while you get your highest interest account paid off first. In the long run, you’ll save money!
4. Pay off Credit Cards with Lower Interest Credit Cards.
If you have multiple credit cards and one has a lower interest rate than the other, pay off the higher interest card with the lower interest card! The total number may look scary at first, but it’s a great way to save some money on interest. Plus, it’ll make paying the cards off easier with just one payment versus two! You can even put the paid off credit card away, so you won’t be tempted to use it while you are out.
5. Don’t Overspend.
If you’re used to using your credit card, it can be difficult to try to pay it off. Not only are you not going to be using it, but also the money that you normally have to spend is going toward something else (the credit card bill). Make sure to stick to the amount you’ve given yourself in your budget; overspending erases all the hard work and progress you make.
6. Sell Things You Don’t Want.
Let’s be honest; everyone has a few things laying around the house that they don’t use. Whether it’s that old record player that you thought looked cool in the store or some clothes that haven’t been worn in months (or years, like the dress that looked great in high school), you can sell them online or to your local thrift shops. Ten dollars might not sound like a lot, but it can add up quickly and can take a decent chunk out of your credit bill.
7. Pay off the Smallest Balance First.
If you have multiple cards, sometimes it’s easier to pay off the smallest balance first. Not only is it easier to pay off, but also you’ll feel accomplished and much more motivated to pay off your other credit cards. Plus, that’s interest saved!
8. Opt for the Cheap Option.
If you’re hanging out with your friends to grab a bite to eat, try choosing the smaller meal or drinking water. Sometimes it can be hard to tell ourselves no, but those few dollars add up. Choosing the cheaper options at Starbucks or Panera Bread is a great way to save a couple of dollars, and every little bit helps!
9. Find Something Else to Do Instead of Shopping.
If you like shopping, then try to distract yourself if you find yourself bored and wanting to shop. Read a book, or try exercising! The biggest way to stop yourself from spending money is by avoiding places where you would normally spend money! You can get books for free from your local library, and you can exercise in your own home. Boredom can get you into trouble, especially if you have a credit card. Stop yourself from creating more debt for yourself by stopping your impulse spending.
10. Delete Shopping Apps.
Let’s face it; shopping apps are everywhere. Things like Wish and Poshmark sell cheap items, but those cheap things add up really quickly. Don’t let a free phone case with three dollar shipping lure you in; delete the app!
11. Be Honest with Someone.
Like many other things, having an accountability partner for your spending habits can help a lot! Be open and honest about your money situation with someone so that they can hold you responsible while you’re working through paying off your debt. You can ask a close friend, your parents, or significant other to help you keep track of your finances! There’s no shame in asking for help.
12. Remember that Every Little Bit Counts.
Every little bit that you can put toward your credit bill helps. Those couple of dollars for a coffee don’t seem like a lot, but they add up in the long run! Dollars add up quickly, and they’ll add up coming off of your credit card bill as well. The coffee can wait in most cases, and it’s not worth the calories anyway!
13. Think about Getting Financial Help.
Credit card debt can get overwhelming and tricky really quickly. If you’ve been trying to pay off your debt for a while and it’s just not working, consider taking some online courses on how to manage your money. There are different ways to manage your money and to pay off credit cards, and a financial advisor can help you on your journey to becoming debt free.
