5 Simple Steps to Paying off Credit Card Debt FAST!

by Fox Symes on January 23, 2013

Having a credit card can make purchasing favourable products so much easier. It is easy to make a purchase on your credit card and simply worry about how you are going to pay for it later. Then comes the monthly statement and you can’t begin to realise how the amount added up so fast, right? You must be strong willed if you want to avoid credit card debt. If you don’t necessarily need a credit card, it may be time to cancel or ‘cut it up’ on your way to becoming credit debt free. We’ve provided 5 simple steps to help you pay off your credit debt as fast as possible.

1. Strict Budgeting

Of course budgeting is required to help you pay off your credit debt. Take your total disposable income amount and determine the total amount of your priority expenses. When you remove that amount from your income you have determined your discretionary income amount. What you decide to do next with you discretionary income is vital. As we are encouraging you to pay off your credit card debt, we are going to suggest that you set aside as much of this amount as possible to allocate to your credit debt.

2. Make More Than The Minimum Payment

Rather than just paying the minimal amount each month and developing higher amounts of interest each time, pay bulk amounts off your debt. This will reduce the total amount much faster and avoid paying excess interest. Take as much of your discretionary income as possible to make the largest possible payment.

3. Make Necessary Sacrifices

Sticking to your budget will encourage you to make sacrifices on unnecessary spending. You may make frequent purchases of luxury or personal items from your savings account or even on your credit card. These purchases simply reduce the amount of your discretionary income. Think to yourself, ‘this is money that I could use to pay off my credit debt’. If you have the mental strength to make this sacrifice, you are on your way eliminating your debt.

4. Generate More Income

If you are serious about paying off your credit card debt as fast as possible, depending on your situation, you could take on a second job. If you work full time, you may find opportunities of casual work that you can take on after your full time work hours in the evenings or on the weekend. If you only work part-time or casual, there may be opportunities to take on more hours where you currently are. Either or, this will provide another source of income that you can allocate straight to your credit debt.

5. Sell Any Unwanted Investments or Goods

This is another relevant method to develop money to help pay your credit debt. You may not wish to result in selling any of your personal investments or belongings but this may be the last resort. However if you are highly motivated in paying these debts you may consider parting ways with some of your valuable property. Not necessarily selling your car or house, more so smaller items of value that you may not necessarily utilise. For example, a spare television or gaming device that you no longer require. This would allow you to come into some fast cash.

By following these 5 simple steps, you will be on your way to paying off the total amount of your credit debt. It may be an easy read, however putting theory into practice may prove more challenging than you originally thought. Be strong willed and stay focused on the goal at hand and achieve this by becoming credit card debt fee.

Visit the the Fox Symes blog for additional information on personal finance and debt solutions.

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