3 Tips for paying off your credit card debt faster
With the economic state our country is in, many people have opted to ‘pay’ with credit cards. This is the same as spending money that you do not have!
Many have used their credits cards and are now in so much debt and they are looking for a way to get out of is, Fast! Here are 3 Tips for Paying off Your Credit Card Debt Faster.
Stop incurring debt
This might sound easy to do, but there are many people who are so used to buying things on credit. This is the best way to get you deeper into debt. Stop charging to your credit card. Do not buy anything that you cannot pay cash for. If you don’t have the cash, don’t buy it! Look around for cheaper alternatives instead.
A great way to keep you from buying unnecessary (and expensive) things is to work with a budget. It seems logical but there are many out there who do not have a budget (which might explain why they are in debt right now!) so they don’t know how much they are spending. Keeping track of your expenses is critical to getting yourself out of your credit card (or any other) debt.
Save in an ‘Emergency Fund’
Saving is one of the most important things to do if you want financial freedom. Establish an ‘Emergency Fund’ (or whatever you want to call it). This is for those unexpected moments (e.g. car breaking down). You may ask ‘How can you save when you are in so much debt?’ or ‘How is saving money now going to help you pay your current debt?’
The important thing is that you need to save, so determine how much you add each month to your ‘Emergency Fund’. Be realistic (you do still have to pay off your debt); the idea is to get you into the habit of saving. Make sure that this money is out of your reach so that you won’t be tempted to use it. If you don’t have much self control, rather put the money in a savings account.
Get rid of existing debt
So now that you have this credit card debt, you need to get rid of it as fast as possible. Here you can review your monthly budget to identify available funds to pay off your debt. After you have identified the funds, establish a debt-reduction plan and stick to it!