Tips For Paying Off Credit Card Debt

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

Credit card debt can very easily get out of hand. The average amount of credit card debt owed by millennials is a helpful tool to collect all of your accounts in one place.

Anything is possible.

If you have a lot of debt and are feeling overwhelmed, begin by being kind to yourself and knowing that it's possible to get out of. There are people with more or less debt than you. It's helpful to get into the mindset that you want to get out of it

Make a plan. There are a lot of options to consider:

• You can negotiate with the credit card company if your account is delinquent. (This negatively impacts your credit score, but might be worth it in the short term.)
• You can take out a 0% APR card and transfer the balance if you can pay it off in 18 months, this can help you take some of the stress off.
• You can take out a personal loan if they are offering you a low amount.

Create a weekly appointment with yourself to look at your debt and try to take one action per week (or more if you can!).

- You have decent credit.

- You are able to curb your spending and can commit to paying it off before the introductory period ends.

- You can get approved for it ?

In a balance transfer, you transfer debt from one credit card to another.

Step 1. Open a new credit card with a 0% APR introductory rate. Try to get a credit card with a decent time period for the rate, it's usually 12 to18 months.

Step 2. Follow the instructions to transfer the debt from one card to another. You can usually do this online or over the phone. Doing it on the phone is nice because you can ask questions.

Step 3. Your new credit card will pay off your old credit card debt and then transfer the balance to your new credit card.

PRO TIP Some cards have a time limit for balance transfers, for example, it's only 0% APR if you transfer within 30 days

Step 4. You will start paying off the new credit card. Make sure you pay it off before the introductory rate is over! That's the only way you win over the credit card companies.

For example, if you have a balance of $ 7,500 on your current credit card with a 20% APR, you might be able to transfer that balance to a new credit card with a 0% APR (on new purchases and your balance transfer) and no transfer fee for the first 12 months. After the 12 month period, the APR for your new card will go up to 20% APR but you will have paid off that debt and not incurred additional interest.

Disclaimer: The information provided is for informational purposes only, to assist you in managing your own finances and decision-making. Snowball Wealth is not a financial advisor, investment advisor, financial planner, fiduciary, broker, bank or tax advisor. Accordingly, before making any final decisions or implementing any financial strategy, you should consider obtaining additional information and advice from your accountant or other financial advisors who are fully aware of your individual circumstances.