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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

More Resources About Better Money Management

Featured photo credit: Pexels via pexels.com

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Last Updated on March 28, 2019

Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019

Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019

Managing your budget can seem dull or just not an important concept at all. However, in the world we live in, we have to survive by being financially savvy. It is very easy to swipe a debit or credit card when we are at a restaurant, shopping at the mall, or ordering merchandize on Amazon.

Whether you like or despise finance, it is indirectly part of your life. Everything you do has to do with mathematics. Meaning, it has to do with numbers, so get acquainted with them.

If you are person who stresses out a lot and checks frequently their online banking, do not panic. There are super-friendly and easy-to-use apps that will break down your expenses in an intuitive way.

The next sections will outline spending tracker apps that will alleviate your worries, anxiety and obsessions of how to organize your money.

1. Mint

    Mint was founded in 2006, and is an award-winning service. It offers a comprehensive experience that is free, fast and super easy.

    The capabilities include budgeting tools, alerts, credit scores, mobile support and compatible with Apple Watch. The support is limited to the United States and Canada accounts.

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    Overall, it is a personal finance service with a wide range of resources to users who can track their spending and budgeting, which will calculate your net worth.

    Your net worth is calculated by connecting all of your online finance accounts and verifying your credit score.

    Get Mint here!

    2. YNAB

      YNAP stands for You Need a Budget and was founded in 2004. It is a great and personal budgeting app that is built on a solid approach.

      It is deemed flexible, and offers users educational tutorials to manage finances in a coherent manner. Also, it has a great web interface.

      However, it takes time to learn the platform. And this spending tracker is relatively expensive and has no free versions.

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      Get YNAB here!

      3. Mvelopes

        Mvelopes was founded in 1999. It utilizes a principles of personal finance budgeting and based on the envelope system of allocated spending. It can also roll-over monthly budgeting, which is supported.

        As a user, you can get personalized forecasts and suggestions on how to manage your financial situation. This means, you will be advised on not to make frequent purchases at the mall or on Amazon.

        Ultimately, it helps you the consumer put savings or envelopes away, so you can have financial freedom.

        The drawbacks, however, are that it is time-consuming to get up and running. The interface is dated and the cost of upgrading is not clear with different premium versions.

        Get Mvelopes here!

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        4. Personal Capital

          Personal Capital was founded in 2009 and it is a billion dollar company. The service is regarded as one of the most popular financial management platforms. The app has a free, Free Financial Dashboard, and a paid, Wealth Management Service.

          The pros of the app are budgeting and investment management are all available in one platform. In addition, it includes investment tracking and socially responsible investing.

          But for Wealth Management, it requires solicitation, high fees and has limited budgeting capabilities.

          Get Personal Capital here!

          5. Quickbooks

            Quickbooks was launched in 1992 on the IBM on Microsoft DOS and Apple’s Macintosh. The software accounting program comes in various versions and editions for small to medium-sized businesses.

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            It can be managed from anywhere at anytime, and it is very easy user-friendly. It can help organize everything from your books, manage expenses, send invoices, track inventory and run payroll.

            Beyond the expense tracking, Quickbooks has been adopted by lots of different companies across every industry you can imagine. So this app is particularly recommended for any business owners.

            Get Quickbooks here!

            The Bottom Line

            When it comes to managing your money, it is important to become educated and financially responsible. The messages we are bombarded all around us are constantly associated with spending, and buying. Nevertheless, the messages we should be getting have nothing to do with saving you money.

            Before making unnecessary expenses and purchases, read the fine print. All of these services have free or paid versions to assist you with your money-saving schemes.

            Ask a lot of questions before making any commitments. Search up free financial consultants or advisors to get a sense of where to invest and not spend your money.

            It is very easy to get in debt, so do not live on credit cards unless you can afford to pay them. Use these apps to live within your means and allocate savings in safe investments that will help you in the longterm.

            Featured photo credit: Alexander Mils via unsplash.com

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