The average amount of credit card debt held by balance-carrying U.S. households is more than $16,000, according to Federal Reserve figures for 2017. Are you one of the many Americans searching for the best ways to pay off credit card debt?
Follow these suggested tips to help you pay off your debt and keep more of your hard-earned money in your pocket.
The first step to managing your credit card debt is to get the details on paper. Write down line by line each of your debts — including interest rates — as well as your income and other expenses. Once you’ve documented these numbers, you have the foundation for creating a budget, which allows you to design a realistic plan to pay it all off.
Create a strategy that outlines how much you will realistically pay toward your credit card debt each month and how long it will take to achieve your repayment goals. Then — and most importantly — adopt the best practices that will help get you in the right mindset and ensure that you will commit to your plan.
1. Try to pay high-interest-rate credit cards first.
2. See your credit card as a tool for convenience, not extra cash you have to spend.
3. When possible, make more than the minimum payment each month.
4. Start with the right card. Find banking programs that offer credit card management tools like payoff calculators, budgeting help and credit management tips.
Get help from financial tools to help you organize and understand how to pay off credit card debt.
Once you’ve paid off your debt, don’t let it build up again. The best way to keep that from happening is to pay your credit card balance in full every month. Determine how much you can honestly afford each month and keep track of what you’re putting on your card so you don’t ever go over that amount.
As a last note, it’s important to remember that with credit card debt consolidation and balance transfers you still have the same amount of debt. You are just using a money management tool that will save you either time or interest charges while you pay it off.
Paying off your debt may take time, but it will be a sound investment that pays dividends in improved management skills to make your money work for your future. Continue reading to learn more about U.S. Bank credit cards.