Have you maxed out your cards? Incurred outstanding debts? Here are some practical ways to pay off what you owe your credit card company.
Prioritize debt payment
Make a list of all of your debts. Then, prioritize them according to a logical system. It can be according to deadlines, interest rates, or the size of the debt.
Decide on a system that you know will work for you and implement it strictly.
Apply for a debt consolidation loan
If you have quite a few debts, consider applying for a debt consolidation loan. This strategy combines several debts into one, with certain terms and conditions added into the loan. This could be a good method for you because you’ll only have to deal with one item to pay off.
If you want to learn more about debt consolidation in your location—whether you’re in Sudbury or someplace else—then it’s better to consult a professional for your options.
Put away your other credit cards
Stop using your other credit cards and put them away. This will help you resist the temptation of using them. Get them out of your bag or wallet and keep them locked away safely until you’ve completely paid off your debts.
If you think you won’t be able to stop yourself from using your cards, cancel them.
Meanwhile, use cash. You won’t have any way of paying when you’ve run out of cash. This way you might be able to stop yourself from impulse buying or extravagant purchases.
Cut down on your expenses
It’s not enough to use cash. You must actively cut down on your expenses as much as you can.
One good tactic is to track your expenses for at least two weeks. You can use a traditional pen-and-paper approach or download an app for easier access. Use whatever works for you but you must be brutally honest about your expenditures. List everything up to the last cent.
You might be surprised by what you see at the end of the review. Do you need to spend $5 each time you get your caffeine fix? Do you have to eat out every night?
Now that you have an idea of what you do with your money, find ways to cut out expenses that are not important. You might save several hundreds of dollars that could go toward paying your debts.
Discipline is key
Be realistic about your goal of paying off your debts. Depending on how much you owe the credit company, you’ll need time to pay off everything. Your credit card has high-interest rates, which will accumulate and add to your running total. So, it will take quite a lot of self-discipline to stay on track of your goal to be debt-free.
Related to the above, find ways to keep yourself motivated while you work hard toward your goal.
Some people like to pay off small debts first then slowly work their way toward the bigger ones. Doing this has a positive psychological effect on them because they can see concrete evidence of their efforts.
Some use their savings as an additional source of funds for their debt payments. This can be a good strategy when you need a last push before your full payment.
As you can see, you have a lot of ways to pay off your credit card debts. You just need to change your spending habits, prioritize your debt payment, and practice discipline diligently.