If it seems like your credit card balance is constantly rising then you need to look for ways to reduce the balance in order to be well on your way to paying off your debt. Here we offer you seven simple ways to bring that balance down.
1 Do not beat yourself up so much that you end up not taking the steps needed to improve your credit situation. Many Americans find themselves owing a tremendous amount of money on their credit cards. Instead of pounding your head against the wall and hurting yourself give yourself the motivational push you need to start moving in the right direction. Think of reducing your credit card debt in the most positive light possible. Once you do that then you can work towards achieving other financial goals that you have.
2 Do up a budget for your money, regardless of whether you are paid the same amount every two weeks or not. Whether you work full-time, part-time, do freelance or seasonal work or are presently in a casual or term position you need to create a budget for yourself that will keep you on track with your money.
3 If you have more than one credit card then follow this rule- when you go somewhere take only one of your credit cards with you. If you take more than one than you may be tempted to use MORE THAN ONE. In this way you will only have a balance owing on one card at a time. The credit card that should accompany you when you leave the house should be the one with the best interest rates and the best terms. The rest should remain at home. Or even better only have one credit card and remove the temptation all together! When you use only one credit card it make it easiest for you to keep track of how much credit you are using and where you are using it.
4 If you have a tendency to use your credit card when your wallet is just about empty then use your bank card (also known as a debit card) instead. The money for the purchase will come directly out of your checking account and there is no interest to worry about and no concern about overspending. There will be no dreaded bill to watch for in the mail and you will give serious thought (not a passing thought) to whether you should purchase an item or not.
5 If you are not sure what interest rate your credit card provider is charging you then you need to find out. Some companies charge low rates while others charge rates as high as 30 percent. In order to reduce your balance you need to know what interest you are paying on your charges. To find out this information take a look at your most recent statement. If you are confused by what you see written on your statement then take a few minutes and call up your company and ask them to explain to you what interest rate they are charging. The interest rate can affect your ability to reduce your balance. The lower the interest rate, the quicker this can be accomplished.
6 Make your credit card payment on or before the deadline. Do not be late or you will be charged a late fee. An act known as the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act was passed in 2009 that made it law that credit card late fees could not go higher than $25 (unless the individual is late more than once in a six month period). But even a $25 fee is too much. If you are awful about remembering payment deadlines then set up an automated payment plan online. Before you set this up however you should check with your bank to make sure that there will be no fees for any of your transactions.
7 Make more than the minimum payment required every month. When you have lots of bills to pay this may seem to be the solution for keeping your account in good standing but it will take you years and not months to pay off a moderately high to high balance and the interest you will pay will make you feel nauseous! Not only that but it will affect your credit rating and may hinder your attempts to get credit in the future. To reduce your credit card balance pay as much as you can every month.
Once you have your credit card(s) paid off remember, from now on do not charge any more on your cards then you can afford to pay off in 30 days. This will help you to keep your spending in check and it will keep your debts low. It will also make it easier for you to sleep at night!
