Are you in credit card debt?
Don’t let your credit card debt prevent you from achieving your financial goals. You will get your credit debt under control if you:
Prioritize Your Payments.
Your credit score impacts your eligibility for a number of financial tools and legal agreements, from renting an apartment to qualifying for a mortgage. Take a look at your credit score: if it has room for improvement, you likely have too much outstanding credit card debt. One of the best ways to improve your score is to pay down your debt with purpose. Don’t ignore your credit card debt! Prioritize your credit card payments in your spending budget instead. Include your credit repayment in your monthly budget, front and center.
Pay More Than the Minimum.
Your credit card balance grows each month with interest. If you are only making the minimum payment, chances are, interest is growing your debt balance. Eventually, you may owe far more money than you initially spent. To avoid the sting of interest (and the risk to your credit score), push yourself to pay down your credit card debt as much as you can afford to each month. Struggling to pay more than the minimum? Pursue an additional source of income part-time; even a few hours a week can make a major difference to your credit score!
Focus on Higher-Interest Cards First.
Be strategic about how you repay your cards. If one credit card balance is subject to a higher interest rate, focus on repaying this card first. Some card providers will let you transfer balances from one of your cards to a lower-interest rate card. Always stay mindful of the interest rates and terms of your debt.
Stop Using Your Credit Cards.
The best way to get your credit card debt under control is to put your credit spending on pause! Stick to a cash-only diet when you leave the house. Delete any saved credit card information on the websites where you tend to splurge. If you find that you’re purchasing necessities like toiletries and groceries on credit, it may be a sign that you would benefit from increasing your weekly income.
More tips for building your financial foundation are available on the Syncis Money Blog today.