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Last Updated on June 22, 2018

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.

Featured photo credit: Pexels via pexels.com

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Charlotte L.

Blogger on https://wanderingformoney.com and Explorer of Ways to Make and Save Money

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

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Last Updated on October 16, 2018

You’ll Only Live Your Best Life Once You Step Out

You’ll Only Live Your Best Life Once You Step Out

Fear is a valuable thing. It keeps people safe and encourages caution when caution is due. But Fear can also be a limiting factor because not everything you’re afraid of should really be feared.

Have you ever been faced with a situation where you were afraid of making a decision, making a change or taking a risk?

Did you end up taking that risk or making that decision? Or, did you just stay put and left things as they were? If you did, are you happy with how things have turned out?

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It’s in our nature to like feeling safe–to be in comfort and away from danger. This has always been the case since the beginning of time, when the first humans only knew how to prioritize survival. Even today, many still choose to play it safe and avoid taking risks or taking leaps of faith when it comes to their choices in life.

The Realist and the Dreamer

To put it simply, there are two kinds of people: the realists and the dreamers. The realists are the logical and cautious type of individuals who always think and weigh out the pros and cons before making any decisions–especially the big, life changing ones. Whether it was deciding on what to major in at University, what career path to take, whether or not to purchase that house or car, to go on that holiday, or to splurge on that new watch, the realist thinks long and hard before making a decision, if they even decide. Realists stick to the “what’s next?” plan for the future and may not abstractly consider different possibilities for where life can lead. This is usually because of the confidence they have already devoted to an accepted plan.

Realists have dreams too, but these are more so rooted in ambition, drive and determination. They are goals that have been enumerated for some time. Realists understand that progress requires more than ambition and drive, but also, connections. They feel that life is never worry-free because of survival, responsibility and…paying a rent or a mortgage. As a result, they tend to make safe choices and stick to their comfort of knowing what’s best for themselves.

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Now let’s look at the dreamers. The dreamers are well, dreamers. They have big lofty ambitions, are risk takers, sometimes over impulsive, but they often always challenge the norms of society and dare to think outside the box. This is not to say that they do not have plans or a path that they want to follow. But they are more likely to change the course of their journey through time, experience and by following their heart.

Dreamers derive their inspiration from within. No one else’s perspectives weigh in greatly enough to shift a dreamer’s drive. Dreamers don’t allow their fears to consume them. They may fail from time to time, but they never give up on life or love.

Embrace Fear

So which of the two do you think you are? And is one better than the other? In life, balance is always key. I’m sure you would have heard the saying: “everything in moderation”. Likewise, being a realist isn’t any better than being a dreamer. Both come with their challenges. But what I do know, is that no matter where you are in life, fear should always be seen as a way of pushing you towards becoming a better you.

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Stepping outside of your comfort zone is a type of fear that should be embraced. If you see yourself as a dreamer, then great! Chances are, stepping out of your comfort zone isn’t new to you. Whether it’s deciding to drop out of University to start your own business, moving to a new country on your own, taking that step to ask someone out on a date despite thinking they’re way out of your league, or deciding to quit your high paying job of 10 years to become a DJ. You chose to do that because you knew that you would most likely regret the ‘what ifs’ more than the mistakes (if any) of those decisions.

But if you’ve always been more of a cautious individual (nearing towards being a realist), then I hope you’ll give more thought to embracing the act of stepping out more! Of course, that doesn’t mean you have to start making hasty or bold decisions such as the ones mentioned. It just means opening your mind to the acceptance that stepping out of your comfort zone isn’t a bad thing, it’s not something to be hesitant or afraid of.

Managing Fear

In times of stress or discomfort, remember that some of the best things happen when you’re afraid or put in an uncomfortable situation. These experiences can both challenge you and help you grow. Commit to giving the situation a try with your best effort, and keep expectations low to reduce additional pressure. Living outside of one’s comfort zone is by definition uncomfortable. Therefore, the best habit you can foster within yourself is the practice of becoming familiar with discomfort.

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You may be at a crossroad in life and feeling undecided about something, or you may feel like you’re not happy with where you’re at right now. It could be a job that you’re not happy with, a relationship you’re not happy in, or even just knowing that you’re too comfortable with where you’re at that you don’t feel challenged. All of this uncertainty can be traced back to your intentions. What is it that you want? What is it that you’re looking for?

So, What Are You Looking For?

If you feel like you’re stuck in a rut or know that you need some sort of change, but you’re just not sure how to take that step towards the change, why not subscribe to our newsletter? Our daily inspiration will help you embark on a journey, and will allow you to find that light at the end of the tunnel you’re searching for.

At Lifehack, we’re dedicated to helping you find the ideal solutions to your problems, and with over 15 years of experience in coaching, we have condensed our knowledge and practices into a highly effective transformational model that you can use to not only help you out of your rut, but to also help you find new and bigger meaning to your life.

Stepping out of your comfort zone isn’t always the easiest, but we’re here to make it easier for you to realize your true potential. The time to act is now!

Featured photo credit: Maher El Aridi via unsplash.com

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