How to Pay off your Credit Card Debt

The credit card is just too easy to use. Most people don’t think about the consequences of their spending until after they receive their monthly statement, then, their jaws drop and they start wondering how they’ll ever pay that credit card debt off. However, you don’t have to do backbreaking labor to do so. Here are some ways you can pay off your credit card debt.

1) Pay more than interest

This is perhaps the biggest reason why people don’t relieve themselves of their credit card debt easily. They think that paying that “minimum payment of $14 a month” is going to actually do some damage to that credit card statement. Wrong. If you are paying only the minimum, no doubt you are only paying off the interest. What does that mean? You have your whole principle left still. You’ll take years to pay off even a $500 debt. So, start off by looking at your monthly budget and seeing what spending you can adjust so that you can pay off a little more on that credit card statement per month. For instance, if you have a subscription to a movie rental service that’s $16 a month and it’s not the lowest subscription rate, you might want to think about going for the lowest rate there is. Although you are sacrificing a few movies a month, at least you will know that putting that money elsewhere, such as towards your credit card payments, is going to do good for you in the long run.

2) Keep it to a minimum

Before you even start thinking about using a credit card, put a limit on your own spending. Don’t depend on the credit card company to do that for you because they definitely want you to keep spending so that they can make interest off of you. So, make sure that you make a register of how much and on what you have spent every month. Treat your credit card like a debit card and you’ll be better off. Also, if you can’t control your spending habit, you should think about owning only one credit card.

3) Reach your cap, cut it up

Once you have reached a certain limit (making sure that it’s a reasonable limit, such as $500-$2,000) cut up or shred your credit card(s). This way, you won’t be tempted to use it, and your spending will stop. Of course, you must still remember to pay off all the monthly statements (and not just the principle!).

So, follow those three tips and you’ll be certainly on your way to paying off your credit card debt in no time. Keep in mind, however, that these tips are only meant as guidelines. If you feel like you have a spending problem, please consult a counselor.