If you consider yourself a financially educated and responsible person, it can be difficult to admit being in deep credit card debt.
To stop struggling with credit card debt and escape the vicious cycle, try these methods to pay off debt as quickly as possible.
1. Learn if you’re eligible for debt relief
Consolidating your debt is worth considering if you want to simplify your bills.
Simply put, you can consolidate your unsecured debt into one at a lower rate. The advantage is that you’re paying off a single debt with less interest than before.
We hear tons of stories of people who successfully consolidate their debt to pay off loans.
If you have over $10,000 of unsecured debt, you can talk to a debt relief expert about your options.
2. Start making extra money at home
Every little bit helps when it comes to paying off credit card debt. Having a side hustle is vital because any extra income you bring in can help you pay off your debt faster.
A top paying site is InboxDollars. It’s an online rewards site that’s free to join which pays you to complete online surveys, review products and more.
3. Start rebuilding your credit score
Checking your credit score can be a daunting prospect when you’re in debt. But not checking it can mean thousands extra in interest repayments.
The first step to good credit score is to get a credit report, history and score for free from Credit Sesame. See who you owe money to and every negative mark that’s dragging down your score. 21% of Americans have errors on their credit report and these can cost you hundreds a year.
4. Find ways to save on your credit card payments
Sign-up for Tally, and the app will do an analysis of your credit cards and your credit history. If you qualify, you get a line of credit with Tally that will be used to pay down your higher APR balances (the savings of doing that can be huge).*
Then, just keep using your cards and Tally will do the work for you, figuring out how to pay them down so you can save in the process.
5. Get a loan to help you pay off your cards
Reduce multiple high interest payments into one monthly payment by signing up for Payoff. The application takes literally three minutes and from there you’ll get the funds to pay off your credit cards automatically deposited into your account. After your credit cards are paid off, you can focus on paying off your loan with fixed monthly payments. Big bonus: No late fees! For people stuck with high interest credit cards this will be a big win.
6. Get your paycheck two days early
Don’t have a savings account yet? You really should. Having a rainy day fund can save you the stress of maxing out your credit cards when an emergency expense comes up. Chime makes opening a savings account free and easy.
Chime is different from traditional banks. They operate entirely online and without physical branches meaning they offer 100% fee-free banking. No more nasty overdraft or late fees here.
My favorite feature is the ability to get your paycheck two days early when getting paid via direct deposit. In a financial emergency, that’s a game-changer.
What are you waiting for? Open a free savings account with Chime and start getting paid early.
7. Supercharge your repayments automatically
Even with a savings account, being disciplined enough to make regular contributions is hard. Digit automatically saves money for you and puts it towards your credit card debt.
Digit analyzes your cash flow to find cash it can safely set aside for you, and then systematically moves some money from your checking account to your Digit account when you can afford to not miss it. At the end of the month, the money in your Digit account is put towards paying off debt. It’s the easiest way to tackle debt since it involves no effort.
8. Have your credit card debt paid off automatically
Ever lost track of your credit card spending and ended up with a bill you can’t pay? You’re not alone.
Debitize puts you in control of your spending by making sure you can never get into credit card debt. It does this by seamlessly moving money from your checking account to a separate bank account every time you make a purchase on your credit card. That money is then used to automatically pay your credit card bill when it’s due.
You get all the benefits of a credit card like rewards, building credit and fraud protection without the risk of going into debt.
9. Check if your repayment rate is too high
It’s impossible to tell if you’re paying too much interest on your credit card debt if you can’t compare your rates to other people. The easy way to compare your finances to others is with Status Money.
Status is a website that lets you anonymously compare your personal finances to people in a similar location, income range and age range to you. It’s a great tool to understand where you’re doing well and what you need to work on.
For example, if you see people in a similar situation to you are paying 13% interest and you’re paying 18% on your credit card debt, that’s a clear sign you should look to rollover your debts to another card.
10. Use gift cards to pay for everyday expenses
Did you know that many companies let you earn gift cards by completing activities online?
My favorite ways to earn free gift cards is with Ipsos i-Say. They send surveys less frequently than other sites but this means you get paid way more per survey. If you’re short on time or don’t like a cluttered inbox, it’s your best choice. Cash out your rewards into gift cards to your favorite supermarket or cash.
How To Pay Off Credit Card Debt Quickly:
Paying off debt isn’t hard if you have a solid plan. These moves will help you find extra cash to pay down debt:
Consolidate and lower your debt into a single monthly payment – Debt Genius
Double your side hustle money – InboxDollars
Check your credit score and report for free – Credit Sesame
Get your paycheck two days early in a fee-free savings account – Chime
Pay off credit card debt automatically – Digit
Compare your interest rate to other people – Status Money
Pay off credit card debt automatically – Debitize
Use free gift cards to pay for your groceries – Ipsos i-Say
*Depending on your credit history, your APR will be between 7.9% – 19.9% per year. Similar to credit card APRs, it will vary with the market based on the Prime Rate. (This information is accurate as of July 2018.)