If you’re sitting on a bundle of credit card debts right now, then you’re not alone. Because of inflation, many people were forced to charge the expenses on their credit cards and carry the balances forward this year. Also, now that the holiday season is ending, you might have a larger credit card balance due, as a result of charging things such as gifts and travel costs.
But no matter why you have credit card debt, the best thing is that you can come out of it soon. Credit card interest accrues daily. It means that for each additional day you carry a balance forward, it costs you a lot of money.
In a recent principal survey, about 28% of the respondents have listed paying off the credit card debt as a big goal. If you feel the same way, then here are some critical steps to be taken.
Take a break from compounding interest:
Credit card debt tends to spiral because they often charge high-interest rates to start with and then increase that interest every day. Therefore, an excellent way to get out of credit card debt is to stop paying interest for a specific period. That’s more than possible if you’re qualified for a balance transfer with a 0% introductory interest rate. Now that 0% rate won’t stay forever. But it can last for 12 months, 15 months, or even 18 months, based on what offer you can get. And now, not compounding more interest for the upcoming months could permit you to get ahead of your debt.
Free up money for the purpose of debt payoff:
Paying off the debt would be a big challenge if you have been spending every dollar of your salary for many months. That’s why you’ll have to commit to cutting back if you’re hoping to get out of the credit card debt sooner.
Take a look at the things on which you regularly spend money. Is it feasible to remove a bill or two without negatively affecting your life? The thought of skipping takeout is enough to make you desire to cry. But if that’s something you’re paying thrice a week, reduce it to once a week. Then take the money to pay off your credit card dues.
Obtain an extra hustle:
These days, several people minutely spend on non-essential expenses because inflation is resulting in their basic bills to skyrocket. If that’s the case, cutting on your costs might not be enough to pay off your credit card debts moving forward. Instead, you may have to increase your income with a side job and use your earnings to come out of that hole.
The good news is that these side jobs are easy to obtain these days, so think about what your schedule permits and find a job that matches. But if you require the flexibility to set your own time, driving for a ride-sharing service could work. In addition, if you need extra work that you can do from home, search for jobs online, whether it’s social- media marketing, remote tutoring, or content editing.
- Published By Team Hongkong Journalist