Credit Card Debt Blog

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If you’ve made getting out of credit card debt one of your New Year’s resolutions, but still haven’t made any inroads yet, don’t give up yet.  It’s easy to become discouraged with your chances of paying off your credit cards, or to become so confused by conflicting advice that you’re unsure how to begin. Don’t get disheartened. You can make a dent in your credit card debt this year — but only if you’re committed to doing so.

There are a million different credit card repayment strategies and debt payoff schemes to help you dig your way out of credit card debt. When it comes to the bottom line, it’s pretty simple: pay more than the minimum payment to reduce your debts.

While that may seem like simplistic advice if you’re drowning in credit card debt, it’s true. Until you can pay more than your minimum payment,  you’re barely reducing your balance — you may be paying off interest, but making little headway in reducing the debt. And if you keep spending, or miss a payment, that allows your debt to continue to grow.

That being said, there’s more than one way to attack that balance. Here are a few of my favourites:

Plead Your Case With Your Credit Card Company
If you’re having trouble making your credit card payments, or can only pay your minimum balances, you may be able to negotiate a deal with your credit card company. Before you attempt to do so, though, be ready to plead your case by letting your creditor know why you can’t pay as agreed. Unemployment, extended illness, natural disaster — anything that’s affected your life and therefore your ability to pay is important to note. Ask your creditor for any special repayment options they may offer, such as lowering your interest or giving you a period of time with no interest due.

Allocate Your Funds Wisely
One of the simplest ways to reduce credit card debt on multiple cards is by paying more toward the balances with the higher interest rates. Make more than the minimum payment on the card with the highest balance, sticking to the minimum payment on the remaining cards. When the biggest debt’s paid off, do the same with the card with the next highest balance, and so on until you’re done. This may work for you if you have cards with varying interest rates; if all your cards are high interest rate cards, then start with the card with the highest balance.

Transfer Carefully
Using low- or zero-interest credit cards to pay off high-interest cards may help you cut your credit card debt drastically, but only if you tread carefully. Make sure that the card offers the  low- or zero- interest introductory rate on balance transfers, and that any balance transfer fees are low enough to make it worth your while. Then, pay as much as you can off the debt during the introductory period, because, when it’s over, you’ll be charged interest on the remaining amount.

Earn More, Spend Less
The only sure-fire way to safely pay down your credit card debt is to earn more and spend less, so that you have more money to put toward digging your way out of credit card debt. However, this is easier said than done, but if you’re dedicated to getting out of debt, it’s possible.

Take on a second job or odd jobs, and put all or as much of your earnings as possible toward your debt. Cut your spending to the bare minimum, and apply the savings to your debt. Yes, you’re sacrificing both your time and creature comforts, but the result is knowing you’ve conquered your credit card debt.

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