Credit Card Relief

Are you looking to pay off your credit card debt faster? Most Americans are, especially with interest rates and minimum payments continuing to rise. Today, we will show you exactly what your credit card relief options are and help you find an affordable monthly payment.

5 Tips To Help You Pay Off Credit Card Debt Fast

1. 1. Stop using credit cards



The first step to paying off credit card debt fast is to stop increasing your debt. Don’t use credit until all credit cards reach a zero balance. We don’t recommend cutting them up because of the fact that we do believe in using credit cards to build credit, and not to build debt.



2. 2. Create a budget analysis



Next, create a detailed budget analysis. Organize and record your income and expenses on a sheet of paper or an Excel document. Log the expenses in one column and the income in another column to determine how much money you have left at the end of the month.




Then, evaluate your budget. See if you can find ways to cut expenses to increase the amount of money you have to pay off debt. Perhaps you can lower your cable or phone bills by switching to a lower payment plan. Or lower your food expenses by using coupons or eating in more often? Maybe you need to eliminate certain items altogether, such as subscriptions, club memberships, and trips to Starbucks. Find ways to cut your expenses!



3. 3. Pay off cards with higher interest rates first (debt avalanche method)



We recommend that you pay off the credit card with the highest interest rate first. This is the card that is costing you the most money so it makes sense that it would be the first one we would want to attack. With the extra money that you have from cutting your expenses, pay at least double the minimum payment, or as much as you can on top of the minimum payment. You may even consider doing a balance transfer to transfer the balance sitting on a high-interest card, to a low-interest card.




Some Debt Relief Consultants recommend paying off the card with the lowest balance first (the debt snowball method), which is supposed to motivate you to keep paying down debt. However, this practice actually ends up costing you more in the long run. If you need that momentum, that is fine, but in order to save the most money and payoff balances more quickly, you will have more success paying off higher interest rate cards first. And the more you pay the better! Once you pay off that card, move onto the card with the next highest interest rate and get it paid off, and so on. On the other cards, just continue paying minimum payments until you can attack each card one by one, and become debt free.



4. 4. Make a payment twice a month



Another idea to consider is to make bi-monthly payments towards your debt. Split your credit card payment in half and make a payment every two weeks, rather than once a month. In the months where there are more than four weeks, you will be making extra payments, getting your debt paid off faster.



5. 5. Celebrate!



Finally, celebrate your success! With hard work, comes a great reward! Every time you successfully pay off a credit card, reward yourself with something! Perhaps a celebration includes taking your spouse out to their favorite restaurant or taking the kids to an amusement park in your area. Sometimes a celebration could include something as easy as going to the movies, getting a massage or treating yourself to that Starbucks you have been going without. Whatever you choose, make it meaningful to encourage you to keep going.