The holidays are over, and that January credit card bill has come in the mail. Surprised by the number, you might be feeling the pinch. Or perhaps reducing your credit card debt was a New Year’s resolution for you. No matter the reason, these three tips will help you to start your journey towards being credit card debt free in 2023!
1. Pay More than the Minimum
This is the simplest way to reduce your credit card debt on your own. Pay more than the minimum on your credit cards each month. If you only make the minimum payment, most of it goes to interest. This means you may only be paying down your balance $10 or $20 per month. When you pay extra, that goes towards the principal, reducing the amount that you owe. When it comes to this technique, every little bit helps!
2. Forego the Points
It can be tempting to run all your monthly expenses through your credit cards to reap the benefits of points. However, when you do this, it is extremely easy to overspend. Even fifty to a hundred dollars extra a month on the card can add up fast! While you are reducing your credit card debt, use your debit card or cash for purchases instead. This will help you focus on paying down the debt without inadvertently adding to it.
3. Consider a Debt Management Program
If you’d like help tackling your credit card debt, consider a debt management program (“DMP”). With a DMP, your interest rates are dramatically reduced. This helps you pay off your credit card debt in 60 months or less (average length is 36 months). Paying higher balances off on your own, even while paying extra, can still take several years. In addition, it will cost you thousands or even tens of thousands of dollars in interest. A DMP could be a great, cost-effective way to get a handle on your credit card debt in 2023.
We’re here to discuss strategies to help you reduce credit card debt, either on your own or with the help of a DMP. To get started, click here.