Credit card debt in the United States is growing at an unprecedented rate. In the summer of 2023, balances surged to over $1 trillion for the first time in history. Effectively reducing your credit card debt requires proactiveness and consistency and we have the strategies to make it possible. Discover how to eliminate your credit card debt and make 2024 a healthier financial year.
Create A Spending Plan
Keeping track of the money you have coming and going is the foundation for all financial plans, no matter what your goals are. Enter your monthly payments into our spending plan to get a full picture of your finances so you can begin to assess your debt.
Assess Your Debt
The best way to manage debt will depend on how much you owe compared with your income. Use a credit card payoff calculator to give you an idea if your debt can be managed by yourself or if you should consider credit counseling or debt relief options.
Assess Payoff Methods
If you feel confident in paying down credit card debt on your own, determine which debt repayment strategy is right for you and adjust your spending plan accordingly.
Lower Your Monthly Bills
Finding ways to reduce your monthly bills can help to free up more money to put toward debt payoff. Don’t be afraid to contact your service providers to see if you can negotiate a better rate on expenses like your cell phone or energy bills. Consider switching providers to find a better deal. Be sure to downgrade or cancel any rarely used or forgotten subscriptions as well.
Increase Income
If you have the ability, even in the short term, making additional money can accelerate your debt pay-off. Getting a part-time job, selling gently used or unused items or using your skills to do freelance work are great options if you have the capabilities to do so. Every little bit helps.
Debt relief
Debt relief can help you change the amount or the terms of your debt to lighten the financial burden, but it’s not the best option for everyone. Talk with a credit counselor about debt relief if paying off your credit cards isn’t feasible or if the total amount equals 50% or more of your gross income. Our friends at Greenpath offer free credit counseling to FBOA members.
