Having credit card debt can be terrifying and overwhelming. After all, the longer you maintain the debt, the higher the debt becomes. But in reality, the best way to deal with how to pay off credit card debt is by being decisive and calm.

There are many ways and many tools you can utilize to eliminate that debt and put you in the financial clear.

Here are some clear and simple (yet effective) tips on how to pay off credit card debt:

Make no mistakes

First off, it is important to resist taking shortcuts when paying off credit card debt. Do not tap into your home equity or emergency funds just to pay off your dent — and, in turn, leaving you with no money on hand, making you susceptible to making yet another helpful site debt. Do not skip payments on your existing loan just to pay off your credit card debt. Do not take out a new loan to pay off your credit card debt.

Target one debt at a time

You should not miss repayments on your credit card obligations — especially if you have more than one credit card. But it’s not realistic to think that you can pay off your debt all at the same time. Instead, focus on a specific goal (while keeping up with your repayments). You can go about this two ways: pay off the debt with the highest interest rate or pay off the debt with the smallest balance. When you pay off the one with the highest interest rate first, you eliminate the risk of accumulating more debt (and, in turn, eliminate the risk that the bank will increase your annual interest rate as well). But when you pay off the one with the smallest debt first, you can take the funds you use to pay off that debt and use it to the pay off the loan with the next smallest balance.

More than minimum

If possible, you should also pay more than the monthly minimum payment of your credit card bill. It goes with saying that the more you pay on your balance every month, the less you’ll pay overall since it will reduce the interest you will have to pay in the long run.

Fix your finances

The best way of dealing with how to pay off credit card debt is to not have an unnecessary number of credit cards. Close the credit cards account you already paid off; not only do you not need an opportunity to have more debt, a credit card also means numerous fees just to keep the account open. If you believe you need to keep the said credit card, lower its credit limit. The best gauge here is to have a credit limit you can pay off in full in three to four months.

Consider other tools

When you feel you need additional help to deal with credit card debt (if you are paying off more than one credit card debt), you can consider credit card consolation.

Consolidating your credit card debt means that you are combining all your credit card debt into one loan account. This way, you only pay off one loan account every month — with the opportunity to change the terms of your loan, including the minimum monthly repayments and the interest. Read more at consolidation.creditcard. You can also browse through debt management tips at this page: https://www.nationalservice.gov/sites/default/files/resource/getting-out-of-debt.pdf
How do you pay off credit card debt? It is not an easy task but with some determination, you can do it! Check out our tips at consolidation.creditcard.


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