If debt is dragging you down, here’s how to get those credit cards paid off.
Credit card debt can be a tough thing to deal with on multiple levels. First, there are those monthly payments — the ones that probably monopolize a scary chunk of your income. Plus, high levels of credit card debt could actually result in a lower credit score, making it harder to borrow money when you need to.
If you’re starting 2022 with credit card balances to pay off, three key moves on your part could leave you debt-free by the end of the year. Here’s how to shed that credit card debt and move forward.
1. Make your balances cheaper to pay off
The problem with credit cards is that they tend to charge a lot of interest so that even a modest balance can grow into a larger one over time as interest accrues. If you’re sitting on several costly credit card balances, consolidating that debt could be a smart move.
One option to consider in this regard is a balance transfer. If you have a good enough credit score, you may qualify for an offer that lets you move your different balances onto a single card with a lower interest rate or even a 0% introductory rate.
Another avenue to explore is consolidating your credit card debt with a personal loan. If you’re able to get a loan with an interest rate lower than what your credit cards are charging you, your debt will be cheaper to pay off.
2. Rework your budget to free up more cash
You may have certain expenses in your budget that are possible to cut back on. If so, reworking your budget could help you get rid of credit card debt sooner.
Take a look at your various bills. It may be possible to spend a little less on food (say, by swapping some takeout meals for home-cooked ones), or to lower your transportation costs by carpooling to work with a colleague who lives nearby. In fact, a series of small changes to your spending could free up enough cash to make a sizable dent in your credit card balances.
3. Boost your income with a side job
To get ahead of your credit card debt, you may need extra money. Since you can’t count on winning the lottery, you can take steps to boost your income by getting a side hustle. Since that money won’t be earmarked …….
Source: https://www.fool.com/the-ascent/credit-cards/articles/how-to-get-out-of-credit-card-debt-in-2022/
