Are you purposely ignoring the increasing amount of credit card bills piling up on your kitchen table? Don’t worry—millions of other people also know what it’s like to be behind on bill payments. If you are deep in debt, you first need to realize and accept that you have to face these debts straight on. Here are some practical tips to help you out:
1) Ask for a lower rate.
Call up your credit card company and kindly ask the customer service representative if there’s any way you could get your current rate lowered. The worst that they can do is say no to your request. Who knows? They might just agree!
2) Divide your minimum credit card payments in half.
Interest is based on your account’s average daily balance for the month. Why not divide the minimum credit card payment in half, and then pay this amount twice a month? By doing this, you’ll also be able to schedule your payments around the time you get your paychecks, as opposed to scrambling to gather enough funds for one large payment at the end of the month.
3) Follow the snowflake method.
The snowflake technique requires you to use any extra money to help pay off your credit card debt. Did you get cash as a birthday present from your parents? Did you make a few dollars from garage sale earnings? Use these additional dollars to pay off your debt instead of spending it or putting it in the bank. It may not seem like a lot—but every little bit counts!
4) Find an additional source of income.
If your monthly earnings just aren’t enough, you might need to find another source of income. If your schedule permits, then try looking for a part time job that you can do in the evenings or during the weekends. Utilize your talents to make a little extra money. Write articles for local magazines or newspapers, or develop a website for a friend’s business. A few extra dollars per month can make a huge difference in getting you out of debt!
5) Build an emergency fund.
It may seem like a tall order, but do your best to allot a portion of your budget towards building up an emergency fund. If you need to make a sudden trip to the doctor or send your car in for repairs, it’s better to pay for such expenses with cash instead your credit card!
Follow these tips and you’ll make steady progress towards being debt free. Focus on your goal and commit to getting yourself out of credit card debt, one payment at a time.
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