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Improving Your Financial Life

Blog > 2014 > September > Diminish Credit Card Debt
September 04, 2014

Diminish Credit Card Debt

You have probably read many articles on eliminating credit card debt. Here is the cold hard truth. Credit card debt is does not seem to go away. Here are some tips to help diminish credit card debt. 

Pay More

Pay more than the minimum monthly payment. Paying the minimum is what credit card companies hope you’ll do. They’ll make more money on you over time, and it will take you years to eliminate your current balance. By paying more than the minimum, you’ll eat away at principal. In the long run, you will pay off your credit card(s) quicker and pay less in interest.

Pay on Time

Avoiding late fees puts more money in your pocket. It’s just that simple.

Stay below the Ceiling

What do you mean by the ceiling? The ceiling is the maximum limit that can be placed on a credit card. Think about going into an elevator in a tall building. Now think about that elevator going past the top floor. Nothing good comes from it. Well… unless you’re Willy Wonka. But who else has a great glass elevator? No one will.

Forget your Card

Wait… what? Yes, leave your card at home. No card means no extra spending. A plastic card should not dictate your life.

Consider a Switch

Work smarter to eliminate debt by finding a card that will help you pay it back quicker. Look for a credit card with a low balance transfer fee, lower interest rates and no annual fee. Consider a switch to a credit union credit card. On average, credit union credit cards have lower interest rates than banks.

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Category: Money Smart, Tags: Debt
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