In a perfect world, we wouldn't ever feel the grind of overwhelming credit card debt bogging us down and dragging our finances into the dirt. But that's the reality that many people are facing these days, as the country still reels back from the Great Recession.
But there is a way to get ahead with your credit card debt, and it does not involve filing for a bankruptcy. Instead, you can use a few of these timeless and proven credit tips to slash your credit card debt faster than you thought possible.
Don't Play the Balance Transfer Game Too Long
The balance transfer game may seem enticing, but in reality it is just swapping out debts and can be dangerous, warns Pennypinchinmom. Basically, you are borrowing from Peter to pay Paul. But, if you get a good deal and can get 18 months interest-free, you may be able to use that time to attack the principal balance, provided that you do not incur any additional charges on your empty cards.
Home Equity Loans Are Great for Debt Consolidation
If you own your own home and have some equity, an equity loan can be ideal for slashing credit card debt, advises Investopedia. That's because these loans come with a very low interest rate that's rolled into your home mortgage. This makes them an excellent option for getting rid of credit card debt in place of lower interest debt instead.
Chart Out Your Plan of Action to Become Debt-Free
If you just pay the minimum monthly payment on credit cards, they could take 20 years to pay off with tons of added interest charges, according to Creditcards.com. Instead, figure out a way that you can pay at least double the minimum while applying the difference to the principal balance. Using this method, you can chart out a way to get rid of credit card debt in about five short years.
Regaining control of your finances is something that we all should strive to do. Certainly, having extra cash flow to pay down said balances faster is always helpful. As a final, parting tip, consider setting aside money to pay down balances each month. View those determined funds a monthly bill that you write a check to. Deposit these checks into your savings account and start checking off high interest debt here and there with each passing month.