Are you carrying credit card debt? You know this is a bad idea right? Many credit cards are 15% – 25% interest and that means that if you are just paying the minimum payment, you are really just paying on the interest!
Not only is it nice to not have the debt, but did you know paying down your debt can help boost your credit score as well? Yep, the utilization rate You need to be making at least 2 times the minimum payment each month, if not more. This is not always easy though when you are living paycheck to paycheck. But don’t fret, there is hope!
If you are looking for creative ways to get that debt paid off quickly, check out these tips:
- Get a second job. No one likes to have to work two jobs, but sometime it is just what we need to get out of the pickle that we are in. Getting a second job, even temporarily, can help you pay off your debts and even build up a savings.
- Sell your stuff. All of us have random stuff cluttering up our house that we don’t really need. Consider selling some of this stuff to bring in the money that you need to pay down your credit cards. And frankly, it is nice to have less stuff cluttering up your life. The extra money is just like a bonus.
- Pay off the smallest balance first. If you have several credit cards that you are paying on, make at least the minimum payments on all of them except the smallest one. For that credit card, make the largest payments that you can afford. The fact that the balance is smaller will help you stay motivated when it comes to reaching your debt relief goals.
- Pay off the highest interest first. This one can occasionally be opposite of number 4, but not everyone is motivated the same way. It is more cost effective to pay off the credit card with the highest interest first so that you are saving more money in the long run.
- Get a 0% balance transfer card. Okay, so it sound crazy to pay off a credit card with another credit card, right? This may be true, but if you are able to get a 0% balance transfer offer, you will likely have anywhere from 6-12 months to pay off the balance of your cards with 0% Interest!!
