Posted by Sponsored Post Posted on 4 February 2020

Don’t Let Credit Card Debt Control Your Life: Effective Ways To Pay It Off

Credit card debt is undoubtedly a toxic debt. For one, you can simply spend lots of money per month, hardly making a deduction or reduction in your loan balance. However, you can free yourself up by paying off your credit card debts for good. 

Once paid off, your money will now be readily available for essential things. You can plan and set money aside for future goals. So, if you’re ready to pay off your debt yet not sure and confident about how to do it, don’t worry!

For a little help, here are some practical ways to get out of credit card debt quickly. So, take a read!

Create a Plan

Did you know that Credit card debt has reached $829 billion in the US? This number only means that American citizens have more debt than ever before. 

Paying off your credit card debt does not have to be hard and strenuous. As a matter of fact, you have more chances of succeeding with a robust yet straightforward strategy. There are three crucial areas that you need to focus on:

  • A master plan to pay off your credit card debt
  • Methods or steps to pay a lower interest rate while minimizing your debt
  • Mistakes to keep away from

Moreover, keep in mind that you will need enough money to be free of credit card debt. So, whether you spend less, earn more, or sell the items you do not need, this is only feasible if you have enough cash flow. 

Undoubtedly, you can improvise if you want. Even so, with some planning, you will boost your chances and confidence of success. 

The Correct Tactic

You must pay more than the least amount to pay off debt. That said, how can you exactly do that? Well, any payments beyond and above your prescribed payment will aid in reducing the deficit.

And there are two well-known methods that other people have leveraged with success. These are debt avalanche and debt snowball. Debt avalanche refers to paying off the highest debt first, rather than the least amount. 

Say, for instance, if one credit card charges a ten percent annual percentage rate (APR) and the other card charges eighteen percent APR, you would pay off the credit card that bills eighteen percent as fast as possible. While you could pay off the ten percent credit card at full tilt, your objective is to pay minimum interest. 

On the other hand, debt snowball refers to building momentum as you lessen debt. This strategy is made famous by Dave Ramsey. 

The concept behind this tactic is to pay off your smallest debt first and work your way up. For instance, if one credit card has a $5000 balance and the other $500 balance, you would pay off the $500 credit card first. 

The question now is, which strategy should you utilize? Well, both methods are excellent, it will depend on which will work best for you.

Alternatives to Credit Cards

If you think you’re using your credit card excessively, know that there are a lot of other options. You may even consider consolidating your debts, mainly if you can obtain a better, favorable interest rate.

What kind of loans can you utilize to combine all your credit card debts? It is wise to leverage unsecured personal loans because you can qualify for these loans based on your income and credit score.

Also, you do not need to promise any collateral because credit card debt is unsecured. Thus, you need an excellent reason to shift to a secured loan. The following are some of the best alternatives to cards:

  • Credit Unions and Banks
  • Online Marketplace Lenders
  • Peer-to-Peer Loans

Things to Avoid

Sure, you are already suffering from expensive, hefty credit card debt. Even so, things could get worse. It is enticing and appealing to go for an easy solution, and a few of these solutions may work.

However, if you are going to apply the methods below, know that you may be making a costly mistake that can torment you for a long time.

  • You are Pledging Collateral. Some people get tempted to pledge collateral, especially if they have insufficient income or low credit scores. Sadly, you would make a risk wherein you did not have one before. If you fail to repay the loan, creditors can foreclose whatever you’ve pledged and can sell it. 
  • You are Using Retirement to Pay Off Debt. Most people’s largest source of income is in a retirement account. Thus, they are tempted to use this money to wipe out their credit card debt. However, if you use them, you will need to start saving for retirement again. 


Paying off your credit card debt may be simpler than you think. The solution here is to create a great plan and stick to it. The ways outlined in this article can help you decide which strategy you need to take to pay off your credit card for good. 

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