When it comes to credit card debt, not everyone finds themselves in trouble due to poor decisions. Often times, these debts are incurred due to needing emergency funds such as a quick trip to the ER or car problems. Nevertheless, the result is the same, buried into debt that continues to grow due to interest. So, how can you get yourself out without the aid of a fancy accountant or attorney? The following list includes a few of the basics of paying off your credit card debt.
Don’t Focus on the Big Number.
It can be easy to look at all your debt and doubt if you will ever pay it off. This is the first and most common mistake that tends to derail people before they even start. The best way to approach this is to break your debt down. Begin with identifying two things: your smallest debts and your high-interest debts. Then re-categorized those until you have the smallest debt with the highest rate and begin to attack that first. This is usually considered the debt avalanche or snowball if you choose to attack your smallest to largest debt.
Transfer Your Debt Balance.
If you’ve been good with your payments and have a decent credit score but still have a large sum to pay off, you may want to consider transferring your overall debt balance onto one credit card. This can be a little tedious and invasive at times, but if successful, you are not only receiving one due date but one interest rate as well. In fact, most cards will grant you a grace period that includes 0% interest between six to twelve months.
Get a Loan. Yes, We’re serious.
It can seem counter-intuitive to get a loan when you’re already in debt but hear us out first. Often times the issue people have with debt is not the amount they charged but the amount of interest that keeps piling on. You want to get a loan because it allows you to obtain a more favorable rate than what a credit card would give you. You use the loan to pay off your credit cards, thus placing you in a better situation in terms of monthly interest accumulation.