Money

4 Ways to Get Out of Credit Card Debt

No one means to get into credit card debt, but it can happen to the most frugal of us. If you’re in debt right now or struggling to keep out of credit card debt, our tips and strategies can help.

Make Short-Term Goals

Many people let credit card debt pile up because they’re overwhelmed at how many cards they ended up with and how much they owe. Making short-term goals can alleviate this feeling. Set an objective, such as paying off one card at a time, and dedicate as much money as you can to that one card.

Ask for Reduced Interest Rates

Most creditors are willing to work with you if you pay your balance on time and have a good credit score. In the short term, they may reduce your rate by a couple of points.

Use a Peer to Peer Lender

If you must borrow to pay off your debt, use a peer to peer lender. Your interest rate will be significantly lower than that of most credit cards, so you can focus on paying off the cards rather than the loan.

Set a New Budget

Wise money management is a big factor in getting and staying out of debt. Start cutting superfluous expenses, and know that cutting back is better than cutting out. If you resolve never to eat out or go to the movies again, you’re going to be tempted. Instead, cut expenses a little at a time—have dinner out once every two or three weeks instead of once a week, for instance.

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