Did you overspend on your credit card this month? Even the most financially savvy individuals may have moments where they spend too much their credit cards to cover a gift, vacation, or emergency expense. Unfortunately, if you rack up more debt than usual on your credit card, the added interest can quickly put you even deeper in debt. Eventually, your credit score could take a hit!
If you recently overspent on your credit card, you still have time to pay down your balance and protect your credit score. These four tried-and-true tricks can help you get yourself back in control of your credit in a timely manner:
Pause Credit Spending: Take a break from using your credit card for now. Delete your saved credit card information on your favorite shopping sites. Do you have monthly necessities you buy online? Instead of using your credit card, consider paying with a service like PayPal. Most online retailers accept popular payment services. Many of these allow you to securely make payments directly from your bank account—so you avoid racking up credit card debt! Until you have your balance under control, leave your plastic at home!
Transfer Your Balance: The less debt you have, the sooner you can pay it back! Check your current interest rate because it can make your debt grow before you know it. You could save yourself time and money if you transfer your balance to a card with a lower interest rate.
Create a Plan of Attack: If you pay back your new debt with a “When I can, if I can” mentality, who knows when you will have your credit back under control? Instead, set a goal each month to pay back a specific amount at regular intervals. Set up automatic transfers to help you stick to your guns and stay on-track.
Increase Your Income: Take a look at your budget. Do you have room to spare? If you don’t think you can undo your credit overspending within six to twelve months, you may want to do a little re-budgeting! See if there is room to cut expenses: these funds can help you accelerate your repayment schedule. Also, many ambitious men and women often decide to pursue an additional source of income. The extra funds are a great way to reverse your overspending and restore your financial footing.
Credit card debt is a headache, but it doesn’t have to get in the way of your financial health! Visit our blog to learn more.