Easy Way to Pay Off Credit Cards
Want to know to best ways to pay credit cards off quickly? These strategies have been proven over and over again and are helping people just like you get out of credit card debt and start saving their money.
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Getting into credit card debt is very easy. Getting out and paying off credit cards will take some strategy. But you can do it.
In this post you will learn exactly what steps you need to take to pay your credit cards off quickly.
I found myself in this boat and was able to pay off $30,000 of credit card debt by using these strategies. I know what it feels like to have credit card debt stress and I know what it's like to feel that burden lifted and I want that for everyone reading this.
This post is all about the PROVEN best ways to pay off credit cards quickly.
List Your Debt
Make a list of every credit card you have and what the total balance is. Then write down what the minimum payment each month is.
Your list should look something like this:
| CREDIT CARD | TOTAL BALANCE | MIN PAYMENT | PAID OFF? |
|---|---|---|---|
| AMEX | $5,000 | $60 | no |
| VISA | $10,000 | $100 | no |
| MASTERCARD | $15,000 | $150 | no |
| REWARDS CARD | $25,000 | $250 | no |
Stop Using Credit Cards
Do what you need to do to stop the debt from building. You can call you credit card company and place a hold on the credit cards if you need to.
You DO NOT want to cancel your credit cards because (ironically) that will affect your credit in a bad way.
Make A Budget
Now you're going to list in one column all your income streams and in another column list all your expenses.
Your budget will look something like this:
$4,000 - Sally's Paycheck
See what you can cut and stick to it. Do you need 10 tv subscriptions?
The one category I always have to keep myself in check is eating out. At the end of a long day I'm tired and it's so easy for me to order out for dinner. If you're like me then this tip might help you:
Make a meal plan, and go to the grocery store with a list and actually STICK TO IT!
Also, meal prep - make lunches and dinners for the week on Sunday. Cheaper and healthier than eating out.
Negotiate
Did you know you can call your internet guy and ask for a lower bill? I've done it and it was easy and painless. Especially if you have been a loyal customer.
Call your phone service provider and ask for a discount or if you qualify for a lower rate. They want to keep you as a customer so let them work to keep your business.
You can call you electric company and see if you qualify for Budget Billing - thats where they bill you an average of the year's electric cost each month. For example, you may notice your electric bill increase in the summer when your AC is on constantly but then your bill drops in October because you no longer have the AC running. Instead of paying for these seasonal swings you can pay a steady amount all year so you don't get caught off guard with a huge bill one month.
Pay Your Lowest Credit Card Off First
This is sometimes referred to as the snow ball method, here's how it works:
Make the minimum payment on all your cards except your lowest credit card bill. On that credit card you are going to throw as much money as possible over the minimum payment and try to pay that credit card off as quickly as possible.
After the lowest credit card is paid off you do the same strategy on the next highest bill. As you pay off your credit cards you will have more and more funds to pay larger amounts of the credit cards off quickly thus creating a snow ball effect.
Earn Extra Income
The more available income you have the quicker you can pay your credit cards off. Here are a list of side hustles you can do whether you work full time or stay at home with your kids:
- Start a blog - this is my favorite and has been life changing for me. Check out how you can start a blog and make some serious side income.
- Selling items on ebay - what do you have lying around that you no longer need? Sell it on ebay.
- Selling clothes on Poshmark - Same goes for clothes.
- Walk dogs or pet sit - love animals? You can make substantial money pet sitting. People need someone reliable to take care of their furry friends when they cannot be there. Check out Rover.
- Freelance skills on Fiverr - Are you good at web design, copywriting, virtual assistance or freelance writing? Check out Fiverr and set your own rate for each project.
- Deliver for Doordash, Uber Eats or Post mate. - Are your evenings free? Why not pick up some extra cash delivering food for people?
- Rent out your car - this is actually a thing disrupting the rental car world right now. People will pay you to use your car. Check out Turo.
- Rent out your space on Airbnb - Even if it's an extra room you can make some serious side hustle money renting out your space.
- Earn money online with your photos - Shutterstock will pay you money per image download of your photos.
Emergency Fund
Let's talk about an emergency fund.
Before you start throwing all of your extra income at paying off your credit card debt it's a really good idea to save up a couple month's rent in case of an emergency. If that's too much right now save at least $2,000. Put it in a savings account and pretend it doesn't exist. This money is only used if you have an emergency.
This post was all about the proven best way to pay credit cards off quickly.
Source: https://financiallyfreebythesea.com/pay-credit-cards-off-quickly/
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