6 Simple Strategies to Managing Credit Card Debt

Having trouble managing credit card debt?

Wondering what’s the best way to get out of debt?

If you’ve racked up a lot of credit card debt over the years, it can be overwhelming and seem nearly impossible to pay off. Compared to other types of debt, credit card debt can be particularly frustrating, since annual percentage rates (APRs) are usually very high.

If you’re ready to start managing credit card debt effectively, you came to the right place. Below we list 6 simple but effective strategies you can use to pay off your credit cards successfully.

1. Focus on Cards With the Highest APR

One of the best strategies you can use to eliminate credit card debt is to focus on paying off the cards that have the highest APR first. The balance on a card with a high APR will end up costing you more over time.

To use this strategy, you’ll need to look at your card statements to find out exactly what your card’s APRs are. Then, start paying off each credit card one by one, making your way from the card with the higher APR all the way to the lowest.

2. Target Cards With the Lowest Balance

Another strategy to pay off credit card debt is to focus on the cards with the lowest balances first. This is particularly a good option if the APRs for your cards are the same.

By paying off the smallest credit card balance first, you’ll be able to celebrate your successes as each card gets paid off and will be encouraged to keep going. It will also quickly reduce the number of monthly payments you’ll have to keep track of.

3. Consolidate Credit Card Debt

You may have heard of debt consolidation before, but is debt consolidation a good idea? The truth is that consolidating your credit card debt is one of the best options available for managing credit card debt.

Using debt consolidation can make debt easier to manage by reducing your number of payments. Consolidation may also allow you to change your debt to lower APRs.

4. Make Use of Balance Transfers

In addition to using a debt consolidation loan, you may also want to consider transferring your balances to another card.

Opening a new credit card or using an existing card to transfer balances from a high APR card to a lower APR card can make a big difference in how quickly you can pay off your debt. You’ll be able to lower your interest overall and payments will become easier to manage as a result.

5. Negotiate With Your Credit Card Issuer

One of the best ways you can manage credit card debt is to negotiate with your credit card issuer. By getting in touch with your credit card company, you’ll sometimes be able to negotiate a lump-sum payment or use other emergency assistance options to reduce payments for a short time.

Credit card issuers will also sometimes be happy to lower your interest rate, lower your monthly payment amount, or forgive late fees.

6. Go Beyond the Minimum Payment

A simple but also very effective strategy for paying off credit card debt is to make a habit of always paying more than the minimum every time you make a credit card payment.

The faster you pay off your credit card debts, the less you’ll pay once all is said and done. Even paying an extra $10 a month can make a big difference in reducing the overall interest you pay and can move you towards your goal at a much quicker pace.

Managing Credit Card Debt Using These Strategies

While it may seem like a huge task, managing credit card debt doesn’t have to be as difficult as it seems. Using some of these repayment strategies can set you in the right direction and make the process as easy as possible.

Looking for more debt management tips? Be sure to take a look at our blog to find more interesting articles and helpful guides.

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