According to a Federal Reserve Report, 83% of American adults have credit cards. As a result, credit cards have become more of a convenience than a statement. Unfortunately, their ease of use and access has also contributed to Americans’ mountainous debt.
According to Lending Tree, Americans have a total credit card debt of $887 billion. If caught up in this tangle of credit card debt, you may feel hopeless and wonder if you could ever live debt free.
Here are five tips to help you repay your loan sooner rather than later.
Ditch Your Credit Card, Now
Sometimes the best strategy is to perform surgery on a festering wound before it spreads. Your credit card offers unmatched convenience, and the idea of not using your cards might be terrifying. But think of it as a temporal intervention to ensure your financial health. If you have to use credit cards, use ones with the lowest interest rates.
Pay Credit Card Debts with Highest Interest First
One of the effective strategies for paying off any debt is repaying the one with the highest interests and then making minimum payments for debts with lower interests. Pay in large sums beyond the minimum payment as much as you can.
Consolidate Your Debts Using a Personal Loan
Credit card debts are draining because of the high unfixed interest rate. Instead, you could consolidate all your loans with one fixed-rate personal loan from Symple Lending. A debt consolidation loan offers a structure for paying all your debts in a centralized approach.
Temporarily Cut Expenses to a Bare Minimum
It is best to pay off credit card debts sooner rather than later. That would mean going without some luxuries for some time. For example, you could downsize your home, cook more, and reduce TV subscriptions. Use the potential financial freedom as a motivating factor to keep expenses low.\
Use a Side Hustle to Chisel Debt Away
Sometimes you need a radical approach, such as getting a side hustle. For example, if you can play guitar, you could offer lessons, write for an online publication, or design logos for solopreneurs. You could check out the best online hustles that can earn you an income.
Credit card debts are much easier to get into than to get out of. However, it isn’t a death sentence. With a good debt repayment strategy, you can sigh with relief when you pay your last payment and breathe in financial freedom. Symple Lending can help ensure the stress of credit card debt is a thing of the past. Apply one or all tips and watch as your credit card debt crumbles to zero.
