Are your credit card payments beyond overwhelming? Even with minimum payments each month, are you finding it difficult to make a dent in your debt? The following are nine ways to help eliminate debt.
List your debts
Make a list of any accounts and include the interest rate, required minimum payment, credit limit, account number, interest rate, and payment due date. This will give you a clear indication as to how much you owe on all your cards and loans, which can be easier for managing all of your bills.
Make timely payments
Make it a priority to make your credit card and loan payments by the due date each month. To avoid being late with your payments, set up your account to be paid automatically on a specific date. When you’re late with a payment, extra fees may be added to your account, making it that much more difficult to eliminate your debt.
Pay more than the minimum payment
If it is financially feasible, pay more than what is required each month. By only making minimum payments, you are mostly paying for the interest fees, which means you won’t make much of a dent in your overall debt. By making even just a bit more than the minimum payment, you’ll be able to pay off your credit cards much quicker because you won’t just be paying the interest.
Prepare a budget
Make a budget that takes all of your expenses, bills, and your monthly wages into consideration. By making a budget plan, you can see where exactly your cash goes, and this can make it easier to cut down on unnecessary costs.
Negotiate a low interest rate
If you recently lost your job or you’re facing financial difficulties for another reason, contact your lenders and explain the situation. You may be able to negotiate a lower interest rate, which will make it easier to make timely payments and will help to make a bigger dent in your overall debt.
Alternatively, you can request a payment plan that is more suitable for your budget and financial situation. As your financial circumstances improve, you can let your lenders know and have your payments risen so that your bills are paid off quicker.