Category: Helpful Information
Many Americans today carry a balance on their credit cards from month to month and struggle with bills that keep piling up. If you are facing these issues and want to reduce your balance, try the following tips:
One Card at a Time
If you have more than one card, it's important to always make the minimum payment required for each bill. However, additional payments should focus on paying down the total balance of one card at a time. Once you finish paying off the first balance, you can add that payment towards your next debt.
Pay More Than The Minimum
Paying more than the minimum balance on your credit card can help you pay off your debt faster by decreasing your total balance. A smaller balance collects less interest, which puts you a step closer to a debt free life.
Consolidate Your Debt
Consolidating your debt allows you to combine multiple higher interest balances into one with a lower rate. This means you can repay your debt faster without increasing payment amounts. You can do this by obtaining a 0% balance transfer credit card (0% introductory period) or a personal loan.
Budget Your Spending
Control your spending to avoid new debt and monitor monthly spending to identify areas where you can cut back and save money. Extra funds can be used to pay down debt.
Managing credit card debt is not a simple or easy task. The suggested strategies are great ways to decrease your balance, but they may not be enough. If you are struggling to manage your credit card debt, Premier Source Credit Union offers credit counseling that can help you meet your financial goals.
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