There is no feeling worse than being in debt. The debt on your credit card can pile up to become a huge amount of interest that can become a heavy burden on your finances.
But while you take stress about it, there are ways through which you can bring yourself out of this pit hole.
Follow these 7 tips to know how you can help yourself pay back the credit card loan.
How to get out of credit card debt
Avoid using the card before you pay the previous loan
There is nothing worst that you can do to yourself than using your credit card while you already have a debt on it. Interest rate that vary between 15 and 25% would take your card balance to the sky before you even know it. Often times, people feel stuck on the treadmill of debt, watching the principal amount grow while they make minimum payments. But the thing is, stop running after your debt balances. Use debit card or cash till you have completely paid off your loan. This way, you can divert your focus to paying the previous balances and saving money through cash.
Keep track of your expenses
Imagine you never had a credit card, just cash. Would you ever be able to buy things more than you have money? Never. This is what you should learn, the sooner the better. Credit cards tempt you to spend more than you have. This puts you in a great risk, as you are actually paying twice the amount you have borrowed from the bank in the form of loan. The initial step is to track every time you have spent a single dime. Keep a record of your payments and your expenses side by side. Once you understand the way you are spending, you will be able to cut costs and save more.
Get rid of discretionary costs
Make a few sacrifices while you direct maximum money in your credit card balance. Stop eating junk and dinner outside. Avoid luxuries like movie theater, concerts etc. Stay home in summers and do every possible thing you can to save yourself some amount. This is the best way you can save. People who want to keep enjoying while they are under great pressure of debt would only suffer in the long term. Avoid making extra calls and keep your TV and cable off for maximum time.
Search for part time job
If your current income does not fulfil your credit card requirement, think of having some side job that would help you save some extra money. Search for a part time evening or weekend job that you can make time for. Opportunities like such are always out there. The market research companies give consumers paid jobs like shopping assignments or filling out surveys. Seek such chances and make as much side cash as you could. There are so many opportunities available online that can help you make some extra cash.
Contact your creditors
Your creditors will help you see any concessions. Give them something to know that you are struggling between your debts and are in dire need of assistance. It will lower the interest rate you have on your credit card. Or the most they can do is put on a repayment plan. This will only be helpful for you if you ask. Seek help from financial planners and creditors.
Visit a counselor to get out of credit card debt
A financial counselor from a non-profit organization can easily assist you in developing a budget.
Explore several options that can help you get out of credit card debt. You can be a candidate in the non-profit for a debt management plan in which the creditor often times reduces the interest rates and avoid the collection activity, minimize or minis the late fees and waive limit fees. Counselling sessions are often times free so you don’t have to bother yourself about the money.
Make a plan
Make a plan and reward yourself. Your plan should include realistic dates for when you plan to pay off the credit card loan. Keep your goal in front of you all the time and check it every day. Work accordingly to meet the dates. Keep yourself motivated by rewarding yourself every time you are able to meet your credit card goals.
Sign up with credit card companies that have a decent way of helping you out and do not charge you anything extra. From the interest rate to the payouts, everything should be clearly mentioned to you.
Extra Tip: credit card payments can increase if you shop online. Prevent yourself from extra interest rate and credit card scams by avoiding purchasing from websites that are not legally authorized or popular enough for you to trust them.