How to Pay Off Your Credit Cards Faster

So here were are again, wishing and wanting that credit card debt to just go away.  But instead, it grows, steadier and steadier over time.

And after a few years, we’re left looking at our statements, wondering how come it’s so much higher than it was?

How come I can’t seem to get these things paid down?

Well, it’s simple.  You haven’t strategized on how to do it.  Most of us, myself included, pay the minimum, or a little past the minimum, every single month.  We might not even use the card, but we rarely see a difference right?

And then there are those people that pay OFF their entire balance every month.  Who are those people?? What are they crazy??

Well no, not exactly.  In fact, they’re probably smarter than us right now.  While I’ve never been in that boat of paying off all my debt every month, it’s something we should all aspire too.

So if you’re like me, and want to see the balances go down faster, let’s try a few of these suggestions.  I promise they work!

1. Stop Using Them– This might seem redundant, but you really have to stop using the cards, to get them paid down/off.  This, believe it or not, was pretty tough for me. I mean I wasn’t charging big things, but I’d charge 1-3 things every month. And guess what, my balance never really moved.  It takes practice and diligence, but you MUST put down that card!
2. Transfer balances to low/0 APR–  If you have cards that have room and lower interest rates, or you come upon a great deal on a card, with a 0 interest rate, then yes it’s ok to balance transfer.  But close out the old card. I beg of you. If you transfer and leave the old card open, well, I can guarantee it won’t be long before you’re using both.
3. Cut Expenses, Use Extra Cash Towards Payments–  Cutting expenses is the first step towards paying the debt off faster.  And your first step should be to do a budget, (link to budget). It’s boring and kinda scary, but it’s the first step and has to be done. Don’t be scared, just do it!
4. Use Snowball– The snowball effect is to pay off the smallest card, then others. I personally like the snowball effect the best, because it gives us psychological rewards.  We can see things happening and it keeps us motivated. Check out (insert link) to learn about the other debt strategy, stacking to compare what might work for you.
5. Try Stacking– Stacking, as opposed to snowballing, is to pay high-interest rate card first  Whether you choose stacking or snowballing, it really doesn’t matter. Whatever works for you, and keeps you interested and motivated to pay off the debt, is what’s most important.
6. Ask For Lower Interest Rate- This used to be a time tested way to help with debt reduction.  Truth is, it’s harder to come by these days. In years past, you could call the bank and ask them to reduce, and they would.  These days, they are much more reticent to do it. It’s not to say that you shouldn’t try, but it’s tougher.
7. Find Side Job to Earn Cash-  Finding side income, is the greatest!  Side hustling is one of, if not the best, way to find extra income to pay off debt.  Try becoming an Uber driver, or delivering newspapers, or freelancing. You’d be surprised all the extra ways to make cash these days.
8. Make Two Payments Per Month–  This is my favorite way to make a difference in my debt.  If you’ve got the funds, or you’ve started your side hustle jobs, this will absolutely make a huge difference.  Our first payments are applied to the interest and then principal. The second payment will be applied to just the principal.  It’s an awesome feeling to see that number go down, and down, and down. Even if you make an extra payment every other month, or two, it will make a difference.
9. Ask the Bank to Forgive Debt–  This solution is when you are in dire straits.  I don’t recommend this solution, but for some of you, that have lost your job, have health problems, or are drowning in debt, this might be your only solution.  Many banks will not just forgive the debt, they will make you go thru the process of collections. It can be quite scary and stressful. Most forgiven debt can still be considered taxable, so you’re not completely off the hook.  This is the last resort, and not as good of an option as trying to settle the debt. Either way, you’re credit will be negatively affected.

The truth is, paying off debt, especially credit card debt, can be a daunting, stressful time.  Lord knows there have been times when I just wanna give up on it, somehow hoping that it will just go away.  But guess what? It doesn’t. Having a budget with concrete numbers and a plan of action to attack it, is in my opinion, the only way to go.  A life free of debt is a free life. It’s something that we all aspire too, and it’s achievable with a plan. So take the steps today and get your plan together. And just think, once the debt is paid off, think of the peace of mind that you’ll have.