There are ways to handle your debt better so you can pay it back faster. Here are a few strategies that will help get you out of credit card debt.
1. Make a payoff plan
It is easier to be in control of your debt if you make a plan to pay it off. To make a plan do the following:
- Write down all your card balances, including the interest rate and the total owed.
- Figure out the smallest monthly payment and the total due.
- Calculate the amount that you can pay extra.
- Decide which card to pay off first. People usually pick the card that has the greatest interest rate and after that card is paid you should move on to the card with the next highest rate and so on.
You are more likely to repay your debt faster if you have a plan.
2. Rework your budget
If you pay more money on your debt repayment it will help you climb out of the hole more quickly. You should consider paying for only the things you need and your fixed costs such as your car, groceries, and mortgage. Other than that, pay as much on your debt as you can.
By doing this you will be able to pay off your balances more quickly than if you were just sending in smaller payments each month.
3. Talk with your creditors
Lastly, you should speak to your creditors about what options you have.
They may allow you to work out a plan to repay or settle your debt for a one-time payment that is smaller than what you actually owe. This step may be hard because it often damages your credit. However, if you are having financially hardship because of the amount of card debt you owe, this may be a good option for you.
You should consider each of these three steps carefully and decide which of them are right for you. It will depend on the amount of debt you have and how realistic it is to pay it back within a certain timeframe without damaging your other important goals.
Author: Blake Ambrose
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