The tax season has come and gone. A few of us had the control to pay down their credit card debt, most of us did not and are now wishing we had. If you are one of the latter, here are three ways to pay that credit card debt down this year.
- Start with a simple strategy. How do you want to attack your credit card debt? Do you want to pay off the card with the highest rate first or the one with the lowest balance?
- Now that you have your strategy, try this. Send the minimum payments on all of you other cards, but send at least 150% of the minimum on the target card. After three months, start paying double the minimum payment until it is paid off.
- If the first two methods of attack seem unmanageable, then look for a way to transfer the balance to a credit card with a lower interest rate. After you transfer the debt, you will still need to stop using the card or you will find yourself in an even worse situation.
As you are trying these strategies, try using your debit card alone. Yes, you may feel a bit of a pinch for a few months as you adjust to the new reality of your lifestyle, but it will eventually be well worth the sacrifice. This kind of smart planning can help you avoid alternative options such as debt consolidation in Birmingham, AL.