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.
1. Acknowledge the 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
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
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.