You needed to replace your car’s transmission. You expected to be earning more money by now. You were just trying to be generous. Whatever the reason, special occasion or good intention, you’ve suddenly racked up far more credit card debt than you can afford to pay off at the end of the month. The strain on your savings progress and your credit score, doesn’t feel good.
Consider applying these five strategies to your debt repayment plan, and feel financially healthy again in no time:
Get Your Budget on Your Side: A budget is a tool you can directly tweak toward your new goal of debt-repayment. Assess your spending habits and push yourself to follow a budget that cuts as much “unnecessary” spending as possible. The more streamlined your budget, the more repayment power you will have.
Strategize: If you owe balances on multiple cards, focus on one debt at a time. Aspire to pay down the highest interest-rate debts first, because the longer they go unpaid, those are losing you the most money.
Change Your Interest Rate: Consider transferring your balance from one card to another with lower interest. But keep in mind, the cost of transferring a balance may outweigh the interest you would pay in the long run. Alternatively, consider calling your bank to inquire if you, a long-standing customer of theirs, are eligible for a lower rate.
Pay When You Have the Funds: Schedule automatic transfers of your income to your credit card, as soon as you are paid. This doesn’t mean you should avoid making additional payments as well throughout the month, when you notice you have financial excess.
Additional Income: Our debt can keep us trapped in a whirlpool of interest payments, never able to fully save for the future because we always owe for past purchases. Consider taking on a second career, which can provide the additional income you need to finally be free to make the financial progress you deserve!
Credit card debt can be a major distraction from your financial goals. So give as much effort as you can to your debt repayment, and feel the financial headache of future purchases and emergencies lift away.
To learn more, visit the Syncis blog at syncis.com/blog.