By: V. Malone, MsBA
Here are the Top 5 Ways to Get Out of Credit Card Debt
Credit card debt is a growing concern among consumers in many countries. According to CNBC, 64% of Americans are living paycheck to paycheck. It is easy to accumulate debt quickly with the use of credit cards and the convenience they provide. However, the consequences of this debt can be severe and long-lasting. In this article, we will explore the dangers of credit card debt and ways to avoid it.
Top #1 Way to Get out of Credit Card Debt: Create a Budget
1. Create a Budget: The first step in getting out of credit card debt is to create a budget. Track your spending and determine how much money you can allocate to debt repayment each month. By sticking to a budget, you can reduce your overall spending and allocate more money towards paying off your debt.
Top #2 Way to Get out of Credit Card Debt: Prioritize Your Debt
2. Prioritize Debt Repayment: Once you have a budget in place, prioritize debt repayment. Make paying off your credit card debt a top priority, even if it means reducing or cutting back on other expenses. You can also consider transferring your balance to a credit card with a lower interest rate to reduce the amount of interest you pay over time.
Top #3 Way to Get out of Credit Card Debt: Increase Income
3. Increase Your Income: Another way to get out of credit card debt is to increase your income. Consider taking on a part-time job, selling unused items, or renting out a room in your home to bring in extra cash. Any extra income can be used to pay off debt and get you closer to a debt-free life. Check out this list of part-time, remote jobs on Indeed.
Top #4 Way to Get out of Credit Card Debt: Settlement
4. Try #1 through #3 and still struggling? Negotiate with Creditors: If you are struggling to make your minimum payments, reach out to your creditors and see if they can help. They may be able to lower your interest rate, offer a payment plan, or even forgive some of your debt. The worst they can do is say no, so it’s worth a shot. The good news: professional law firms have gotten together and began negotiating settlements on behalf of clients in blocks, meaning that settlements when managed professionally are much more beneficial to the card holder than doing it on their own. Click here to learn more about how lawyers work on your behalf for no money to settle your credit card debt for pennies on the dollar.
Top #5 Way to Get out of Credit Card Debt: Avoid Further Debt
5. Avoid Further Debt: While you are working to get out of credit card debt, it’s important to avoid taking on any additional debt. This means not using your credit cards and finding alternative methods for making purchases, such as using cash or a debit card.
In all, credit cards can be useful tools to gather points, rewards, and monitor spending. However, they can lead to very precarious financial situations for families. If you find yourself struggling with credit card debt and unsure of your options, contact our Personal Financial Analysts today for a free consultation and they can give you a professional, no-charge, review and suggestions of the path forward.
Carlo V. DeFalco
RELENTLESS Venture Studio