The holiday season is over and now you have a big credit card bill from all your generosity this season. Don’t panic! Those bills will be paid off in no time if you use these five tips:
Don’t Ignore Your Bills:
It may be easier to just put them on a back burner and forget about them but that will only make it worse. Each month that you miss a payment you get a late fee- each late fee is reported to the credit bureau and hits your credit score.
Save Your Money:
Try to weed out some of your daily expenses to put that money towards your credit card bills. Avoid that starbucks in the morning or happy hour after work. Don’t use shopping therapy to cure your nerves from that holiday bill either. Curb your spending so you don’t lengthen the time your debt and you can use the extra money to pay off your balance.
Go Big:
Don’t just pay the minimum balance of your credit card- pay as big of an amount as you can. If you pay larger amounts you end up with less interest adding up and get your balance to zero faster.
Combine Balances:
If you are paying off multiple credit cards look into combining your bill to one card. The combined debt can be easier than paying off multiple cards. If combining your cards is not an option then focus your efforts. Make the minimum payment on all your cards except one and put large payments towards that card. Once that card is paid off move onto the next card until they are all paid off. Always start with the card holding the highest interest rate and work your way down that ladder.
Return Unused Purchases:
Don’t leave unused purchases just sitting in your closet. Return any purchases you can, if the store demands a receipt you don’t have you can try your luck selling it online with craigslist or ebay. While your on Ebay list all the things you don’t use- that money can go towards your debt as well.
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