8 Tips to Tame Your Credit Card Debt

5 min read
8 Tips to Tame Your Credit Card Debt

Are credit cards crippling you?

Maybe you’ve got one card, maybe you’ve got a couple. Maybe between you and your spouse, you’ve got so much debt racked up on the plastic you could have bought a chunk of a house already.

Whatever your credit card debt, it’s a financial millstone around your neck. If you’ve got lots of maxed out cards, you might be beside yourself wondering how to pay them all off. You could be in a pattern of only paying the monthly minimum and never getting anywhere.

Try these tips to get your credit card situation back under control.

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1. Acknowledge the debt

Tips to Tame Your Credit Card Debt

You need to acknowledge that there is a problem before you do anything else. Credit card debt is the result of overspending, whether you were splurging on some big ticket items or you had a genuine emergency you had to whack on the plastic. Do some reflection to analyse how you got to be in this situation: you want to make sure you don’t repeat the same mistakes in the future.

2. List all your credit card debts

List all your credit card debts

If you have multiple credit card debts, list the outstanding balances from smallest to biggest. This will help you to get a good grasp of exactly how much you owe and what you are up against.

3. Pay the most expensive debt first

Pay the most expensive debt first

Some credit card interest rates are really high. If you have a high interest debt, paying it off as quickly as possible needs to be your priority. If it looks like it will take you a long time to pay it down, consider trying to transfer it to a low interest loan if you can, so you can save yourself the interest pain.

4. Repay more than the monthly minimum

Repay more than the monthly minimum

The key to whittling down your credit card debt is making more than the monthly minimum repayments. All you are doing with the monthly minimum is avoiding late charges so you can continue to use the card. You might not even be paying enough to cover the interest accruing, which can lead to trouble as you’ll eventually max the card out.

Next Page: More Tips to Tame Your Credit Card Debt

About Author

Caroline Duncan

Caroline Duncan is a freelance journalist and photographer with almost 20 years' media experience in radio, magazines and online. She is also a mother...Read More of three daughters, and when she's not writing or taking pictures, she's extremely busy operating a taxi service running them around to various activities. She can't sew and hates housework. Read Less

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