Credit Card Debt- Everyone finds it easy to pull out credit cards from their wallets to use without being bothered.
Little do they know they are gradually keeping a pile of debts to be dealt with sooner or later. Credit cards deceive you as they make you think you have enough money to spend when you don’t.
Even if you use your credit card only when you don’t have any money, but you need to spend to save an urgent situation or implement income ideas, there is a high risk.
One can still end up abusing their credit card and creating a massive pile of unintended debt.
Some of the debts costing you so much could probably be credit card debt, car payments, and student loans. This could be a source of worry for you.
But the good news is that once you make paying off your debt a priority, it’s often easier to do than you think.
A lot of persons have cases relating to credit card debt, and it may be a little challenging to easily pay off the debt because of the high-interest rate and the temptation to spend more than they earn.
Having to deal with debts for a very long time is one situation you wouldn’t love to want to find yourself. It drains a person’s finances and limits the savings and investment choices available to the debtor.
If you continuously depend on borrowing from your credit cards to make your daily purchases, you may probably find it challenging to pay the debt.
Also, you realize that you don’t have any cash left either, so what steps can you take to get out of this unpleasant situation?
It is something challenging for almost everyone, however, you can get out of it if you pay attention and do not handle the case with levity.
If you want to be free from credit card debt so you can keep some more money in your pocket and achieve your financial goals, here are seven different steps to pay off your debt for good.
How To Get Rid Of Credit Card Debt When You Have No Money
1. Start By Creating A Budget
You should have a budget for yourself. Plan your finances accurately. It isn’t a good idea not to have a budget drawn out when you’re trying to sort out your credit card debt.
Don’t assume you know all your expenses by heart. This could be risky as you might end up making bad decisions when it comes to spending. As the saying goes, the faintest pen is better than the smartest brain.
Putting your numbers down on paper and going through them every day will make you more conscious of the situation. Also, a budget will help you evaluate how much you can spend on your debt monthly so that you will be able to cover it more efficiently.
2. Emergency Savings Fund
We can not shy away from the fact that emergencies come up. As we know that emergencies are unexpected, but we must always prepare for them.
Some of your unforeseen expenses could be car repairs, medical bills, boiler repair, unexpected trips, and speeding tickets.
It’s quite easy to do. You have to have your mind made up, keep your savings fund separately, and you shouldn’t touch that money until an emergency comes up. And when this happens, you can only use the money you saved up for emergencies.
In the following months, it is crucial to saving another $1000 for emergencies. This will keep you from getting into more debt.
3. Put Together A Plan For Getting Rid of Your Credit Card Debt
You can’t efficiently start eliminating your debt if you don’t have a plan first. You need to have a close and accurate overview of the status of each of your accounts.
Thus, make a comprehensive and detailed list where you will include the debt, balance, and interest rate of every one of your accounts.
Next, you’ll have to choose your priority. This means that you need to decide on the account you want to start with.
You’ll have to pay enough money monthly as you can afford to offload the debt in this first account while giving minimal attention to others.
You may pay huge amounts for the first while paying less or minimum to other accounts monthly. When you do this, you will deal with one account at a time, instead of panicking about all of them.
4. Don’t Increase Your Debt
When you are dealing with credit card debts, it is important to try as much as possible not to incur additional debt. Unfortunately, many people fail at this.
How do you know if you’re increasing your debt? You raise your debt if you spend more than you earn. This means that if your expenses are higher than your income, then you are adding more debt.
There are certain measures you could use to prevent increasing your debt. First, you have to decrease your credit card limit or cancel the card. Also, always think deeply before making your purchase.
You have to know how to differentiate between your needs and your desires. Your desires could be suspended until you clear off your debt.
Furthermore, if you’re the type that goes on expensive holidays and family trips, you have to change that. This time, for the sake of paying off your credit card debts, you could book for cheaper holidays.
The point is that you have to opt for everything that will make you spend less. When you do this, you don’t have debts piling up.
5. Find A Way To Reduce Your Monthly Expenses
Do you know where your money flies every month? Do you even have an idea of the things you spend money on? A monthly check of your bank statements will help keep in check how and on what you spend your money.
When you’re trying to make a purchase, ask yourself if it is essential to make it. Most certainly, you will discover some expenses that can be cut from the list. That way, you will be able to generate more money that will cover your credit card debt.
To cut your monthly expenses, you could do the following:
A. Cook your food at home from scratch: I do my grocery shopping weekly, and it makes it easy for me to keep to with my budget because I know I can’t spend more than a specific amount.
Then, every day, in the evening, my wife and I prepare dinner as well as lunch for the following day. This has helped us a lot in reducing our expenses. And this means more money for paying off our debts.
B. Sign up for online surveys to earn cash to add to your income: Online surveys could be done in your spare time. This doesn’t disrupt your daily job. And you don’t always have to earn cash, you could win gift cards that can be used at Amazon, and it’s very easy.
As little as the money you earn from online surveys could be, they are still adding to your income. Keep in mind that paying off debt is a goal, so you need to be committed to it and understand that you are not lowering costs for anything.
6. Look For Ways That Will Increase Your Monthly Income
You can always find a second job or work as a freelancer. You can also sell the things that you no longer need but are in good condition online.
Otherwise, earn money from one of your hobbies or even start a small business. And as long as you are creative, you will manage to get a skill or talent to earn more than you currently do.
A. Find a part-time job: Babysitting, working in retail, or even freelancing are some examples of part-time jobs you can do to make some extra cash.
B. Start a blog: Blogging is my hobby, and each month I’m making $1,000+ as a side hustle. If you don’t believe it, you can check out online income reports from many successful bloggers online to see where the money is coming from.
C. Answer surveys Online: Survey companies I recommend are Swagbucks, Vindale Research, Survey Downline, Earning Station, American Consumer Opinion, Harris Poll Online, Topcashback, and Mr. Rebates. You can join all these online survey apps for free.
You’ll be paid to answer surveys and make use of some test products. It would be good to sign up for all of them and start answering surveys to make more money.
You can also register for free courses online to acquire certain sets of skills that you can use to make some money. There are several free online classes you can take that will equip you to handle things for people.
That way, you can make some money both to cover for some of your genuine needs and to pay off your credit card debt.
7. Attempt Getting A Lower Interest Rate
I want to let you onto a secret that you may not have known. Interest rates are what makes paying your credit card debt so challenging.
You may have some chances of success when it comes to asking your credit card issues for lower interest rates. However, in case the issuer won’t budge at all, you should consider moving your balance to a credit card issuer that can offer a lower interest rate.
You can also attempt getting a balance transfer. With a balance transfer, you can put your current credit card balance on a new credit card that provides a 0% interest rate for some time.
Ensure that after getting a transfer, you do not spend the extra money on things other than paying off your debt.
I have shared with you some of the steps you can take to live a credit card debt-free life. Ensure that you follow the steps and see your debt vanish, and your savings increase.