Having a credit card is a double-edged blade. It’s useful in case of emergencies, for one. However, if you can’t pay the total amount due, the interest rate can quickly become crippling. If you are barely able to pay the minimum balance on your credit cards, it’s time to take action.
Consolidate Your Debt
Write down how much you owe on each card to find out the total debt you actually have. If you can, try to consolidate all your debt into one card, ideally the one with the lowest interest rate. If that’s not possible, you can pay it off one card at a time.
Most people would try to pay off each card as evenly as possible. While this will slow down the continuous rise of your debt, it can take you a much longer time to pay it off. Two ways to go about settling what you owe is first, to pick the card with the highest interest rate and prioritize paying it off. This can save you more money as you continue reducing your debts. The second way is to choose the card with the lowest amount due. Clearing at least one card will give you a sense of accomplishment and the morale boost will encourage you to keep going.
Another option is to refinance the mortgage on your home and using that money to pay off your credit cards. There are many firms from Salt Lake to New Jersey that can help you process your mortgage papers as quickly and painlessly as possible. In this way, you are exchanging a short-term, high-interest debt for a long-term, low-interest debt and you’ll be saving thousands of dollars.
Once you’ve paid off all your debts, it’s time to reassess how you use your cards. You can choose to reduce the number of cards you have as a first step. Next is to remind yourself to only use as much as you can easily pay. This will prevent you from getting stuck in the same vicious cycle again, and reduce the amount of stress on you as well.