Got debt? Credit card debt is so common but that doesn’t make it any less stressful. This post is SO helpful if you want to pay off debt quickly. It shows you how to eliminate credit card debt and still enjoy your life.
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Yes You Can Eliminate Credit Card Debt
Here is the main problem with credit cards in one sentence:
Owning a credit card can make you feel richer than you actually are.
While it’s easy to whip out a credit card, most people create a debt trap which they find difficult to get out of. Unfortunately, the family cavorting on the beach pictured in advertisements is anything but true.
A credit card is convenient, but it does not say anything about the person using it to buy things. They might very well be buying things with money they don’t have.
While interest rates on mortgages and car loans have gone down, the interest rate on cards remains stubbornly high.
Students just entering high school are targeted by credit card issuers to get a card well before they understand the implications of debt. Credit card companies prey on the desires of students who want to belong to a group and are willing to charge on credit.
The average family owns up to 12+ different credit cards and the average individual owns 4 credit cards (reference).
Related reading: Struggling Financially? 15 Tips From People Who Are Never Broke
This kind of buying power adds up to a massive debt load that few find easy to pay off. Few people have the kind of discipline to say no to items they can’t afford. Managing debt is important in today’s world where so many have lost homes and jobs.
Now the good news…
How to Eliminate Credit Card Debt And Still Enjoy Life
1. Eliminate credit card debt by knowing your spending limit
In the old days, it was customary to only buy what you could afford. That advice is still good advice today.
A credit card should not be used to buy luxury items unless the charges can be paid up at the end of the grace period.
Yet so many use credit to buy vacations, appliances, furniture and other high priced items without much thought that such items will cost far more than just the sticker price.
If you truly can’t afford that item right now, don’t charge it. You can use these tips to pay off your debt overall, and also pick up a side hustle to make more income so you can afford the thing you want.
2. Keep the payments in mind before purchasing
Most people see the purchase price of an item without giving thought to the payments required once the bill arrives.
The item on sale appeals with its presentation, color and sale price. It appeals to human desire, not human logic (see this post on impulse buys).
Few people ever give themselves time to think whether they really need the item they feel they must have.
Make sure you can pay off that credit card purchase in full; if not, don’t charge it.
Related reading: Saving Money on Gas: 7 Tips You Need If You Don’t Drive a Tesla
3. Budget your payments to eliminate credit card debt
A good rule to getting your financial house in order is to pay off the minimum for most cards, but pay more toward the card with a higher interest rate.
Once the card is paid off, you can then target another by adding the payments to the first card to the minimum on the second card.
You can also choose to pay off the card on which you have the lowest balance first.
Related reading: How Much Money Should You Save For An Emergency Fund?
4. Make (temporary) sacrifices to eliminate credit card debt
It really is worth it.
Think of how happy and peaceful Future You will feel when you are out of debt. Then make changes for her.
If your debts are critical, cutting up the cards may be the best solution to curb spending.
You can choose to contact your credit card issuer to arrange a new payment schedule.
Getting a loan is only possible if your credit score is in good standing, though for most people, it’s unlikely they can secure any loan at all. A consolidation loan can help reduce the pressure of paying several cards every month.
No matter what you do, sacrifices must be made. Getting on a cash only basis will help you speed up your debt payments.
Related reading: 10 Creative Ways to Save Electricity and Money At Home
5. Eliminate credit card debt by paying debt together
Financial trouble can be a major factor in many divorces. For the family, debt applies to all members. All members should take full responsibility and work together to reduce the debt load.
If you’re single, you can consult with parents, relatives or even get some debt counseling. No one needs to blame someone for their credit card debt. Only a group effort will help reduce debt and help establish a strategy to never get into debt again.
These posts will help:
- How to Improve Financial Literacy in 7 Simple Steps
- Epic Tips You Need to Get Your Mortgage Paid Off Faster
- 5 Important Money Habits You need to Have Good Finances
- Can a Minimalist Lifestyle Actually Save You Money?
- 7 Important Financial Lessons You Should Have Been Taught (but probably weren’t)
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