How to Pay your Credit Card Debt Quickly

By Garry S. — Published April 10, 2018

How to Pay your Credit Card Debt Quickly

A credit card is one of those things that can solve a lot of your problems, but the moment you lose control, it’s going to get you into a lot of trouble. Unfortunately, many people do end up losing control over their credit card usage and end up in debt.

Now, we all know how much of a problem debt can be, especially when it’s credit card debt. But, the good news is that you can always regain that lost control and put yourself in a better financial position.

All you have to do is pay back the debt. But, this is easier said than done. Paying back debt can be challenging. You’ll need all the guidance possible. So, here are a few strategies to help you out.

The 5 Step Approach

To get rid of debt, you need to have a plan. Well, we’ve provided you with one and it works in 5 stages. The 5 stages are:

• Assessment

• Budgeting

• Spending Reduction

• Saving

• Killing Debt

Now, let’s explore each of these stages in a more in-depth fashion.

Assess
In the assessment phase, you simply assess your debt. You basically need to find out how much it is that you actually owe and how you’re going to go about paying it back. For this, you will need to calculate your debt, establish a repayment plan, and come up with ways to reduce your debt.

For instance, you may have to stop using your credit card for the next 3-4 months until the debt amount has reduced significantly.

Budget
Create a budget. This can help you pay your debt and also, stay away from more debt. Budgets allow you to limit your expenses by placing a limit. This limit tells you how far you can go with your expenditure before breaking the limit.

It’s basically a way for you to separate wants and needs. You gain control over what you spend while tuning out irrelevant expenses.

The primary goal is to limit your dependence on the credit card. In fact, it should completely eliminate your reliance on the card.

Spend Less
In this phase, you are basically looking to cut down your expenses. This is important if you want to get rid of your debt as soon as possible. If you aren’t going to stop spending on unnecessary stuff, you aren’t going to be able to reduce your debt. In fact, you’ll end up increasing it.

So, take time to think and find out where you can cut down. For instance, you can try lowering your utility bills by being more mindful of energy use. In a way, this means you’ll have to make lifestyle changes.

You might have to switch to more affordable food options and indulge in various other low-cost habits and activities. The money that you save from this kind of lifestyle change should be used to repay your debt.

Once you start seeing your debt come down, the sacrifices you make will seem all the more worthwhile.

Save
The next step is to prevent more debt. So, start preparing for all kinds of possibilities by saving some of your money. Anything can happen at any time. For instance, you might have to pay for a few repairs at home or for your car.

At times like this, it is better to dig into your savings than to swipe that card of yours. Start an emergency fund and contribute whatever you can.

Kill Your Debt
The final step is to go after your debt. Use some of the money you save to end the debt. Keep going until its 0. This might take time, but don’t give up or revert back to your old ways.

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