2 Simple Steps on How to Get Out of Credit Card Debt

Credit cards can be highly beneficial as it can quickly help you out of a bind, but losing grip of your self-discipline can quickly lead your spending habits into financial trouble in an instant. Credit card debt can burn large holes in your wallet as paying off the debts become harder with an interest rate of 10 percent to 30 percent APR on a credit card balance. 

This makes it a quicksand-like trap that can keep you in a pinch. A whopping 40 percent of Americans struggle with credit card debt, making it a common and costly problem for people across the world. 

Fortunately, creating and committing a plan can help you get out of debt in no time. With that in mind, the guide below should lead you to financial freedom and even improve your credit score in the process.

Step #1: Consider Different Payment Strategies 

Dragging yourself out of a credit card debt means you have to consider various methods as this will ensure you have a reliable plan and a solid back-up in check. With that in mind, consider the following methods: 

• Debt Snowball – This is a highly effective form of payment that allows you to slowly build your confidence with each payment. This is because the method requires you to pay the minimum amount when the credit card payments come due.
  
  This allows you to roll off the payment toward your next smallest loan, which gradually leads to an increase in the total payment like a snowball rolling down a hill.
  
  By adding to your top card and then adding it to the minimum payment for the next card after the balance zeroes out, eventually resulting in the elimination of your debts.
  
  
• Debt Avalanche – This method works similarly to debt snowball, wherein you switch up your priorities by paying off the card with the highest interest first before avalanching down to the lowest balance. It’s the go-to choice as it is generally the fastest and cheapest method.
   

Step #2: Consider Debt Consolidation 

If your debt is becoming too much to handle, but you find your credit score remains to be in good standing, you can find a way to get out of debt by consolidating the cards into a single account. 

This allows you to make one monthly payment to reduce the balance bit-by-bit. Be sure to apply for a 0% balance transfer credit card as it can help save you money down the line, in spite of the idea being counterintuitive. 

Don’t forget to choose a card that offers at least 15 to 18 0% introductory period as it enables you to chip away at your balance under one payment. With that in mind, DebtHelpers.ca can manage your debt on your behalf; we will negotiate a settlement with your creditors and will put a stop to all collection calls and letters.

Conclusion

Unforeseen events in life can often lead people into borrowing a loan or using credit cards as a quick financial aid. However, paying back with such high-interest rates from different card uses can quickly spiral out of control and lead you to a financial crisis. 

With that in mind, the guide above should give you some simple options on how to get out of a credit card debt. If you are looking to learn more about debt relief solutions, get in touch with us to see how we can help.