In this day and time, there are many ways to pay for products and services. Credit cards are one of them. It is so easy to get into credit card debt when all you need is a quick swipe of your card to make a purchase. I was in a lot of credit card debt at a young age. I learned that it is so easy to get caught in filling out for credit card applications when they come in the mail.
The process is so easy and who doesn’t like free money? That is what I thought at first, but I slowly realized that borrowed money is not free money. I am happy to say that I eventually became debt free and the process was not stressful. Here are some stress-free ways that I have learned to pay off credit card debt.
Stop with the Unnecessary Purchases
Purchasing random and unnecessary products are what gets you into credit card debt in the first place. If you are trying to pay off your credit card debt, the first thing you should do is to stop using your cards. You are going to increase your interest rate the more you use your credit card because each time you make a purchase the charge is added on.
If it spending money is too tempting for you to use your credit card, leave it at home and use other payment methods such as debit cards. I learned to use my debit card for purchases and save my money instead of using my credit card for emergencies. When you use your debit card, you are only spending the money that you have. Focus on using the remaining money that you do have to pay off your debt.
Create a Reasonable Budget
When you are in credit card debt, you need to sit down and make a plan of how you are going to pay your debt off. It will help you set your goals for paying off your credit card debt. You need to have a clear overview of what your monthly income is and your expenses. Once you are aware of what your budget is, you can begin to execute your plan to pay off your debt.
Stay On Track
One of the best ways to pay off your debt is to develop a schedule. I figured out how much I can pay per month and I learned how much I could pay off in a year. I used a credit card, calculator to
keep track of my interest rates, and payments. Utilizing these tools can help you stay on track and develop a schedule, and it will make paying off your credit card debt easier.
Save Your Money
It is good to have a credit card for emergencies, but you should always have another alternative. Saving a certain amount of money when you get a paycheck can give you a cushion in case something comes up. For example, if you get a flat tire or if you need a new battery, you should have an emergency fund to take care of those things. Always go to your emergency fund first before you use a credit card. When you use your emergency fund, you will have less credit card debt to worry about.
How to Create a Plan for Paying Off Your Debt
When you know the basics of paying off your credit card debt without any stress you have to come up with a plan. The first thing you should do is to pay off your credit cards one at a time. If you are in credit card debt, chances are you have more than one card. After you determine which card you are going to pay off first, you should set up a payment plan. Believe it or not, creditors will work with you to come up with a monthly payment plan.
What helped me the most was to cut back on my expenses so I could save more money to pay off my debt. Take a look at your monthly expenses and determine what you can cut back on to make paying your debt easier.
Paying off your credit card debt can be overwhelming, but it does not have to be. These steps that I took helped me relieve myself of credit card debt. If you follow these steps, you will no longer be stressed about your substantial amount of credit card debt.