Five Steps to Knock Out Credit Card Debt Quickly

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Credit card debt seems to linger if you do not deal with it using focus and intention. If you have had the same balance on your credit card for two months or more, then it may be time to apply more focus to this debt. Here are five steps to knock out your credit card debt more quickly.

1. Get a Lower Interest Rate

The interest rate on your credit card has everything to do with how quickly you pay off your debt. If your credit card is at a rate that is 11% or higher, then it may be time to employ some tactics to lower this rate. You can attempt to do a balance transfer to a 0% card (only do this if you can pay it off in the time the balance transfer is at 0%) or you can attempt to call the credit card company and get a hardship program.

2. Pay More Then the Minimum

If you are paying only the minimum amount due every month, then it is likely your balance is remaining the same. Creditors set the minimum amount so you are typically only covering the interest that has accrued to your balance every month. Paying more than the minimum, even if it is only $5 more, can cause your balance to decrease steadily each month.

3. Focus on One Debt Only

If you have more than one credit card, then you do not want to pay more on all the cards. This is kind of like dividing and conquering…only your debts are dividing and conquering you rather than them. Choose one card to focus paying extra on each month. Pay the minimums on the rest. I suggest picking the card with the lowest balance as this provides more of an emotional payoff because it takes less time to pay off the balance.

4. Stop Charging

This may seem like a no-brainer, but many people continue to charge on their cards while they are trying to pay them off. This is kind of like digging a hole and then putting dirt back in it. You will never accomplish your goal of paying off the debt if you keep adding to the debt.

5. Reward Yourself for Reaching Goals

If you payoff one credit card, then reward yourself with something small that makes you happy. This doesn’t have to be something huge. It can be as simple as a trip to Starbucks or dinner at your favorite restaurant. Don’t make paying off debt drudgery. Make it a game with prizes!