Saving more money is a financial goal almost everyone shares. Money lets you build up the resources to do other things – plan for your retirement, invest and build your wealth, go back to school, or start a business. It’s the secret to building a more comfortable and secure life.
But when you’re in debt, it becomes almost impossible to save extra because so much of your budget is going to pay off past spending. The first step toward bringing financial success into your life is getting out of debt.
Here’s how to pay off credit card debt fast and become debt-free sooner.
Stick to Your Debit Card
It’s always better to spend the money that you already have. Adding to your card balances only works against you, so it’s better to resist the temptation and stick to what you have in your bank account.
While there are some budget advocates who recommend sticking to cash and cash alone, using a debit card helps you track your expenses. That way, you can see if you’re on target to meet your weekly or monthly budget goals and adjust accordingly.
Try Credit Counselling
Sometimes, no matter hard you try, it can feel like you’re going nowhere and you need assistance. That’s where not-for-profit credit counsellors come in. They can show you the best way to pay off credit card debt through budgeting and better money management habits.
Certified Credit Counsellors with a not-for-profit credit counselling agency can also work with you on repairing your credit and prepare you for life on the other side of debt. When you’re overwhelmed by debt, your credit score will inevitably take a hit. Credit counselling can help you repair the damage.
Simplify Your Living Expenses
There’s a time to reward yourself – and there’s a time to buckle down and get things done. When debt freedom is your number one goal, saving money is the biggest favor you can do for yourself. These are some areas where you might be able to trim costs:
● Stop eating out for lunch or dinner. Taking a prepared lunch to work can save you over $3,000 a year, and that can make a real difference in your budget.
● Cancel memberships and subscriptions that you underutilize.
● Look into cheaper data or internet plans.
● Hold off on new purchases like a new phone or clothing. Wait 30 days to see if you still want it before purchasing.
Put Your Payments on Automatic
Have you ever been late on a bill because you just forgot? When you’re juggling multiple bills and payments, you can wind up forgetting due dates until it’s too late.
Most credit cards offer a grace period in which you don’t have to pay interest on new purchases as long as you pay your balance by the due date. But it’s common for these companies to remove the grace period if you’re late with payments.
Stop letting debt stand between you and financial success. Get out of debt and start making your money work for you.