Many people are up to their eyeballs in credit card debt. Many of those people also are not quite sure how they landed themselves in that much debt to begin with. Accruing credit card debt is the easy part; paying it off is the difficult part. Luckily, paying off your credit card debt is actually fairly simple, if you only take the time and have the will power to follow a few simple instructions.
Step 1: The first thing that you need to do when paying off your credit card debt is to adopt a “Cash is King” policy. What does this mean? This means that if you do not have enough cash in your bank account or on hand to buy something with, then do not buy it! This is the most common error that people make with their finances. They rely too heavily on their credit cards to help them pay for simple purchases.
Step 2: Another thing that you have to do to avoid piling up your credit card debt is to stop using your cards! I know this can be difficult, which is why you should shred your cards to prevent yourself from using them. Or, if you are uneasy of shredding your cards so soon, you can also freeze them in a block of ice. This is actually an effective way of stopping yourself from using your card, and it should not damage the card in anyway.
Step 3: Look at your balance of what you need to pay off. For example let’s say that you have to pay off 1,000 pounds, and the minimum monthly payment that you need to pay is one hundred pounds. Multiply this minimum payment by five. So instead of paying one hundred pounds for ten months, you’ll pay five hundred pounds for two months. You need to do this in order to a) improve your credit rating and b) pay off your balance as quickly as possible in order to avoid having to pay interest fees.
If you just follow these three easy steps, you’ll have your credit card debt paid off in no time, with little to no damage done to your credit rating.