Getting a new credit card is easier than ever, but those available balances are also tempting when it comes to impulse buys. Use these tips to pay them off.
Freezing your credit card spending is a must. If you use your card for impulse buys, remove it from your wallet to eliminate the temptation. Having an emergency spending account can help you avoid charging unexpected expenses.
Create a Plan
Create a spreadsheet with your credit card debt, including the balance, minimum payment, and interest rate. Decide on the payoff order. Two common options are starting with the lowest balance or the highest interest rate. The low balance option gets rid of accounts quickly and lets you put those minimum payments toward other debts. High interest first can get rid of the most expensive debt faster.
Consolidation can help you pay off multiple cards faster and sometimes at a lower interest rate. You can do a balance transfer to a credit card with a low interest rate. Another option is to get a personal loan to consolidate the balances.
Find Extra Money
Finding extra money to go toward your debt speeds up the payoff process. You can do this by cutting your expenses and bringing in more money. For example, eliminate your gym membership and pay that monthly fee toward your credit card balances. If you get a second job or earn bonuses from your full-time job, put all that extra money toward your credit cards.