How to Eliminate Bank Card Debt
These days, more families than ever are finding it hard to make ends meet. Many families turn to their bank card to fill in the gaps and cover expenses between paychecks. This can lead to excessive bank card debt. A consumer is required to pay interest on this debt.
- Evaluate your budget. Track your expenses for 3 months to get a good idea of where your money is being spent. In order to eliminate bank card debt, you will need to reduce your expenses. Keeping a record of how you spend your money will help you to find out which expenses can be eliminated.
- Cut unnecessary spending. Review your budget and spending records and determine where you can cut expenses. In addition to cutting discretionary spending, you may consider reducing your cell phone plan or canceling your cable service in order to lower your monthly expenses. It is important that your expenditures do not exceed your income.
- Find ways to generate extra income. You will be able to eliminate your bank card debt more quickly if you can generate extra income to apply directly to your debt payoff. Consider various money-making opportunities, such as a newspaper route, babysitting or a second job.
- Speak with a debt counselor. A debt counselor can help you to develop an effective debt repayment plan. After speaking with a debt counselor, you will have an idea of the amount of the monthly payment that you will need to make, as well as a timeframe in which your debt should be paid off.
- Consider consolidating your debt. If the interest rate on your bank card is high, it might be beneficial to transfer the debt to a new, low-interest bank card. This will help you to pay off the debt more quickly.