While credit card debt is easy to get yourself into, recovering from it is extremely difficult. Depending on the damage you’ve done, not only could you be paying for it for a very long period of time, but it could also severely impact your credit score as well. If you find yourself down this path, don’t be discouraged. Here are some simple tips to help you on your path to financial recovery.
This is by far the most important tip to take into consideration. You will never be able to dig yourself out of debt if you’re still continuously spending. Stop charging credit cards, stop buying and get yourself into the right mindset. As long as you know you can’t spend anymore, you can move forward and begin the process of credit card debt recovery.
Look into consolidation options
Before jumping into repayment, consider your options. There are various companies that offer credit cards with zero interest for the first six to 18 months. You could consider transferring the balance of one or more of your cards onto this single card to eliminate the interest that you’re accruing. What you need to be careful of is making sure you pay off the total before the no interest rate runs out. Figure out when that date is and do the math to see whether you’re capable of paying off your debt in that time period.
Start paying off high interest accounts
Don’t look at your account balances for each of your credit cards and determine which ones to pay off that way. When you’ve fallen into credit card debt, you need to look into which credit cards have the highest interest rates. Based on this, you should start paying the highest interest accounts first and then work your way down. Even if you have higher charges on other cards, paying off the higher interest accounts will save you significantly more money in the long run.
Pay off cards individually
Before you attempt to tackle all of your debt at once, pay attention to this tip. Paying off each card, one at a time, is your best bet at getting yourself out of credit card debt once and for all. Once you pay off the first one, immediately start paying off the next. Don’t let yourself get carried away over the fact that you paid off a card in full. It’s not time to celebrate just yet! Once you’ve completely paid off all of your cards, rather than spending money on yourself, put what you’d normally put towards paying off your debt into your savings. This way, in case you ever find yourself in debt in the future, you’ll have a cushion to pull money out of.
Talk it out
While many credit card companies can make your life rather difficult due to fees and what-not, this doesn’t mean you should avoid calling them for questions or help. If you call your credit card company to discuss the options available for your account, it could turn out that there’s a solution through them that’s right for you.
If you find yourself in credit card debt, it’s not the end of the world. By following the tips above and understanding how to take the right approach to solving the problem, you’ll be able to pay off your debt over time and will surely be able to learn from the mistakes you made!
Ashleigh Murray is a freelance writer who has a great deal of knowledge in the financial space. After graduating college, she found herself with a hefty student loan and significant credit card debt. She’s been working to pay off the debt over time and has found a lot of great information through creditrepair.com.