Tips To Pay Off Your Credit Card Debt As Quickly As Possible
We welcome a guest post on personal finance today from Jeff Weber.
If you are like millions of Americans, more than likely you have a stack of credit card bills reaching into the thousands of dollars. No matter what your reason for the unpaid bills, these debts can play havoc on your life causing you to lose sleep, deal with stress and even fight with your partner. If you are ready to be rid of your debt once and for all and reach financial freedom, you will need to make tough decisions and numerous sacrifices. If you do, you just may be surprised at how quickly you can see results. Here are some tips to follow if you are looking to tackle your credit card debt and get it paid down quickly:
Stop Spending Money And Stop Using Your Credit Cards
The first step to paying debt down quickly is to stop spending money except for absolute necessities, and to stop using your credit cards to pay for additional purchases. This may not be easy but it is totally necessary if you are serious about tackling your debt at a fast pace. This means no more meals out, no more stopping for coffee on the way to work, and instead brown bag your lunch and invest in a refillable mug for the coffee you make at home. Making small sacrifices like these now will pay off big over the long term – once you are debt free, you will have more disposable income and can resume allowing yourself these little luxuries.
If you can, you might consider moving high interest credit card balances to a 0% APR balance transfer credit card. Look for cards that offer 0% interest for six months or more, and with low balance transfer fees to save the most money.
Cut Everything Out Of Your Budget Except For Essentials
This is a tough one, but one that can also free up a lot of money to pay down your debt. This means canceling your cable, getting rid of your cell phone or home phone and keeping just one line open, canceling magazine subscriptions, gym memberships and basically removing absolutely everything from your life that is not required. These are not essentials and the amount you save by taking them out of your budget can easily add up to hundreds of dollars each month. These funds can give you a great start at paying down your credit card debt. When making these sacrifices, keep in mind they are only temporary! Once you have your debt paid off, you can slowly decide which of these non-essentials you want to add back into your life. Just make sure that as you add the cable television or other expenses back in, that you can easily afford to pay for them with cash rather than charging them to credit cards – or you’ll just start the cycle all over again.
Get A Second Job
While it may mean long hours and even more sacrifices like time away from your family or friends, the sooner you get your debt paid off the sooner you can achieve financial freedom and remove all the negatives in your life that are related to your credit card debt. A second income can make a huge difference in how fast it takes you to pay off your debt. Get a night or weekend job waiting tables, delivering pizzas or freelance something you are talented at doing. Make sure the money you earn from this second job is applied directly to your debt to help pay it off quickly – it can be tempting to reward yourself with a big night out on the town when you get your check from a second job, but this is just defeating the purpose.
Sell Big Ticket Items That You Could Do Without
Many of us have big ticket items sitting around that we really do not use often. If you have big ticket items in your possession, maybe it is time to consider selling them. Boats, jet skis, snowmobiles – these items can all bring in some fast money to help pay down your debt. Additionally, just cleaning out your house and having a yard sale or listing items on eBay or Craigslist can bring in additional money that can also be helpful in your financial goals.
Jeff Weber writes about saving money and reducing credit card debt with 0% APR balance transfer offers at SmartBalanceTransfers.com, a website designed to educate consumers about balance transfers and credit cards.
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