Unexpected emergencies and overspending can lead to credit card debt. Life happens. As we recognize March 21 as Credit Card Reduction Day, we all know there are hundreds of reasons to accumulate credit card debt, but here are five ways to knock down the balance owed.
Tip 1 – Transfer your balance onto a card with a 0% introductory interest rate offer.
Tip 2 – Consolidate with a personal loan which may lower your rate to as low as 6%.
Tip 3 – Snowball or avalanche. Snowball: While paying the minimum on every balance, funnel all your extra cash toward the smallest balance. When that one is paid off, take that payment and work on the next-highest balance. Avalanche: While you make the minimum payments on all your balances, divert any extra money towards the balance with the highest interest. Once the highest interest is knocked out, move onto the next-highest and so on until your debt is gone.
Tip 4 –Find ways to cut back on discretionary spending to funnel toward debt.
Tip 5 – Stay out of debt by establishing good financial habits to increase your credit score and only use your credit card for purchases you’re positive you’ll be able to pay once your statement comes.
Adapted from: This Article