8 Tips to Help Get Rid of Credit Card Debt

Credit Card Debt - Complete Controller
Despite everyone’s good intentions, many people end up holding credit card debt from time to time. Overall, Americans owe about $85 billion in credit card debt. This is not a negligible figure. If one has a high-interest rate for credit card debt, they should not panic. There are many options to help them take control and get out of this situation. Here are eight tips to help you get out of credit card debt. Check out America's Best Bookkeepers

Stop spending more money than what is available

For impulse buyers, materialists, and those who never manage to meet their budgets, the cure is simple enough: take charge. Set a monthly budget, and do not spend more than what is available. The sooner a person realizes that they are not a Rockefeller, the easier it will be for them to live within their means, and they should jump off the treadmill and stop trying to catch up with their neighbors.

Do not stop paying the credit cards

It doesn’t matter if a person’s interest rate is highest or at 0%. They should always repay as much of their credit card debt as they can afford each month. The more often they pay, the less chance they will give their debt to increase. Delaying is a common stress response that will only cost money. Renouncing will ruin their credit score and make their future options even worse than they currently have. Check out America's Best Bookkeepers

Consolidate the debts on a low-interest balance transfer card

If one has balanced on several credit cards with high-interest rates, they are in luck. They can get a credit card that transfers their high-interest balances to a lower interest credit card. There are many balance transfer offers in Canada, with some offer rates as low as 0% for 12 months, with a transfer fee of 1%. They should use the interest-free year to pay off as much of their debt as they can, to feel free.

Negotiate with the credit card company

If one believes it or not, calling their credit card company and asking for a reduction in their rate can work. Card issuers will often offer a 5% or more discount on the interest rate, just for asking for it. It does not hurt to ask, and the worst that can happen is that they say no. That said, the best credit card officers are willing to work with people to make sure they do not change companies. It’s in their interest to do so. Some banks even have a low-interest credit card option that anyone can apply for.

Use the home equity line of credit

Sometimes, interest rates are generally low. Credit card rates rarely reflect the truth of interest rates, but mortgages do. Also, because their home secures one’s home equity line of credit, it will reflect an even lower rate than unsecured loans. Taking advantage of this by paying their high-interest debt with their home equity line of credit can prove beneficial. They should make sure they do not default because if they do, the banks will get their home. Check out America's Best Bookkeepers

Personal loan and interest rates

While personal loans and interest rates are generally not as attractive as balance transfers or home equity lines of credit, some personal loans in Canada may be a good option for those who want to consolidate their debt and pay a fixed monthly payment until their debt is paid off completely. That said, beware of the super-high fees hidden in the fine print.

Pay the smallest debts first

Sometimes taking control is the first step. In light of this, repaying one’s smaller debts first helps eliminate the number of payments they have to make. Getting rid of a series of small debts restores order and a sense of success, encouraging them to continue making payments on time.

Pay credit cards with the highest interest rate first

If there is a significant gap in a person’s credit card interest rates, it is always worthwhile to first eliminate the highest interest rates. Whether the balance is small or large, repaying the higher interest balances will save the most money in the long run and help you become debt-free faster. Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers