Trying to get out of debt, but seem like you’re stuck in the credit card game? Since credit cards generally have some of the highest interest rates of any type of loan, it can be very difficult to pay them off completely. This is especially true if you have large balances or multiple cards. Here are some tips to use to get rid of that credit card debt.
- Use a calculator. I’m not just talking about an ordinary calculator. If you’re looking to deal with an impending credit card balance, you can use a credit card refund calculator to see what it will take to pay off your credit card balance and what you can change to achieve it. your repayment goals. Try ours, here: https://cucalc.org/014468/payoffcc.php
- Use the debt snowball method. If you’re a regular Savings Corner reader, you know Dave Ramsey is one of my favorite financial gurus. I would say the debt snowball is Dave’s trademark. Whenever I hear someone talk about trying to get rid of debt, they are likely to snowball the debt – paying off small balances first and progressing to bigger ones. , regardless of the interest rate. If that’s okay with you, read more here: https://www.ramseysolutions.com/debt/how-the-debt-snowball-method-works
- Consolidate into a personal loan. If you have multiple credit cards with larger balances and you’re committed to getting out of debt, a debt consolidation loan might be right for you. The idea here is that you combine all of your high interest credit card debt into one large loan with a lower interest rate. It can save you a ton of interest. The two most important things about it are: the interest rate will be lower and the loan will be closed and non-revolving. You’ll pay it off at the end of the term, rather than staying on that credit card merry-go-round. However, a big caveat: you must be disciplined and DO NOT add more debt to these credit cards. Otherwise, you’re just digging yourself deeper. If that sounds like the best option for you, Coosa Valley Credit Union has one of the lowest personal loan rates around. We would love to help you get on the right track financially!
Whichever method or methods you choose, focusing on reducing credit card debt is always a smart choice!