In this times of economic uncertainty, getting yourself in sound financial position is a dream for everyone. One way to achieve that is by getting yourself out of credit card debt. Nowadays even lenders have tightened their lending standards making it imperative for people to bring down their credit card balances. And to achieve this, a structured and disciplined approach is mandatory. Below is a list of tips that will help you get rid of your credit card debt as quickly as possible.
Ways to get rid of your credit card debt:
1. Improve your rates.
The fastest way to get rid of credit card debt is through negotiating a low interest rate with your lender. If you get a reduction on your rates, you can save hundreds of dollars as you pay off your debt. Just a simple call and a sincere and polite request may be all that it takes to get your interest rate lowered. Call every credit card provider and negotiate low interest rates; you may get the best deal in the market.
2. Create a budget
This is the right time to cut some of your expenses. If you are not aware of how to do it, then engage the services of debt coach. He can help you come up with innovative ways to reduce your expenditure drastically. Your immediate action plan is to ask your coach to help you write down ways you can cut back your budget immediately, downgrade or cancel some services. Divide your monthly budget into weekly allotments so that you better handle on whether you are sticking on track.
3. Track your expenses
It is crucial to track your committed, regular expenses such as utilities, mortgage, insurance, phone and cable bills, minimum credit card payments, car payments, etc. and other variable expenses such as travel, entertainment and restaurant meals. Tracking your expenses will serve as a base to your budget.
4. Find your motivation
With the help of your debt coach, create your goals and keep them in your purse or wallet. It is also recommended that you find a forum to share challenges, stories, and successes. If you feel that you are tempted to overspend, take a look at your financial goals.
5. Track your progress
Lastly, track your progress on spending. Set a reminder to revisit your finances every month and compare with your set goals in order to verify whether you are on the right track.