If you and your family struggle with credit card debt, you are not alone. Millions of Americans overspend on credit, according to Bank of America, but you need not struggle by carrying burdensome payments month to month.
Paying down your credit card debt requires reviewing your spending habits and following a few tips that could have a significant impact on reducing card balances.
1. Use snowball payments
You may find that the snowball method of paying off more than one credit card may help you methodically eliminate or reduce your balances. Begin with the card that carries the smallest balance and focus on paying it off first. Once you zero out that balance, begin applying what you paid monthly to the next-largest balance, and so on.
2. Tackle high-interest cards first
Paying off high-interest cards first can prevent debt pits that seem unconquerable. Paying the minimum monthly balance on these cards is not likely to reduce the overall balance. Focus on reducing these cards first by applying at least double the balance if your budget allows, and use cards with a lower APR for making purchases.
3. Consolidate debt with balance transfers
Transferring credit card balances to a new card with a lower interest rate may help you pay down that debt and apply a greater portion of a payment to the premium rather than paying interest charges each month. While you may pay a transfer fee, you will likely save money overall.
Using cash or debit cards for purchases can also help you avoid credit card overuse and high-interest charges.