There are many reasons why most of us decide to sign up for a credit card. Whether it’s to help boost your credit score or as a means of purchasing a more expensive item that you plan to pay off in increments, credit cards can be a smart option for your finances. Unfortunately, they can also be very detrimental to your budget if not used wisely or paid off in a timely manner. If you’re feeling stressed about your card balances keep your head up and remember you can work your way out of debt! Here are four fast tips for effectively paying off your credit cards.
Cut them up
This may sound like an obvious solution but it is an enormously effective one. Stop the behavior that has gotten you in trouble in the first place and put an end to making charges once and for all. Moving forward, plan to only make purchases you can pay for right away and begin the process of working your way out of the debt you’ve created.
Pinpoint the problem
What is it that you’ve had to use your cards to purchase? Clarity is key when it comes to your personal finances. Are you living out of your means and making high-end purchases that you simply cannot afford? Are you making poor financial choices like eating out too much that you can easily rectify? Sit down, look at your credit card statements, and alter your lifestyle accordingly.
Compare interest rates
If you owe on multiple cards, go back and review each one’s interest rates. Many people automatically assume that the card with the highest balance is the one to work on first but this is a mistake. The high interest rates are what will get you in the end, so concentrating on those cards will have a greater impact on your finances.
Get a side job
Sometimes, if your debt is going to take a significant amount of time to control, it’s best to look into other sources of income. Check out these three easy ways to make money on the side for more information on how to get a few extra dollars in your pocket.