Are you carrying one or more credit card balances? Are you finding it difficult to manage your debt?
Regardless of how many credit cards you have and how much debt you’re carrying, there are steps you can take to better manage it in the future.
Tip: if you assume that everything will eventually come together, you could soon find yourself facing even more problems. If you have credit card debt, it’s best to take immediate action.
Here are some tips that can work in your favor:
1. Tally Your Debt
Don’t assume that you know how much credit card debt you’re carrying. Take the time to tally your debt, down to every last penny, so you know exactly what you’re up against.
It may be scary, but it’s a step you have to take. Neglecting to tally your debt will only cause you more harm in the long run.
2. Find a Way to Pay More than the Minimum
If you only make the minimum payment, it could take many months or even years to rid yourself of credit card debt. This isn’t the best approach to managing your balances — unless you have no other option, of course.
Get creative with the way you save money, as doing so allows you to throw more at your credit card balances. Even if it’s only a few dollars here and there, it’ll work in your favor over time.
3. Consider a Balance Transfer Credit Card
It’s difficult to manage credit card balances that are spread over several cards. Not to mention the fact that it’s more costly, as you’re paying interest on each one.
A balance transfer credit card has many benefits, including the ability to bring all your debt under one roof.
Also, most offers have a zero percent introductory rate for 12 to 18 months. This means you don’t pay any interest on your balance during this time. That may be just what you need to make a big dent or even pay off your debt in full.
Note: beware of the balance transfer credit card fee, which is generally in the three percent range of the total balance.
Final Thoughts
There’s no exact science to managing your credit card balances, but these tips can put you on the right track to reaching your goals.
While you may feel bogged down by credit card debt right now, don’t fret. Instead, create a strategy for digging yourself free!
