Theres really only one way to get out of credit card debt: by paying off the balance.
Were here to help you avoid the most common and costly errors people make when getting out of debt.
Let it help you make the best money decisions during your climb.
7 Credit Card Debt Mistakes to Avoid
Youre ready to pay off that credit card.
But just randomly paying back money without a strategy could end up costing you more money.
7 Ways to Make Money if You Hate People
Do you avoid people too?
Enough small talk.Here are some waysto earn extra cash, without all of the social stuff.
Well, the same goes for paying off debt.
How do you prevent the money from disappearing?
By creating a budget.
Stop whining its no different than planning a vacation itinerary.
and commit to applying that money to your credit card debt instead.
Did you know?
Interest rates can make a big difference.
How much of a difference?
Lets say you have $5,000 in credit card debt and you commit to paying $400 every month.
By opening abalance transfer credit card, you could save yourself a bundle on interest.
The rates then rise to a higher annual percentage rate after the promotional period ends.
Getting aside hustleto bank extra money for payments can accelerate your payoff schedule in a meaningful way.
Acredit counselorcan review your financial situation and make recommendations to improve it.
The little-advertised assistance option could suspend your minimum payments or reduce your interest rate temporarily.
But you wont get the help unless you ask for it.
Thats calledresidual interest(or trailing interest).
And not paying it will result in late fees and a hit to your credit score.
Losing Sight of Your Future
Paying off your credit card bill is important.
But so is your future.
In the short term, that could be due to an unexpected expense and noemergency fundto cover the cost.
And once you make that last payment oh, joy!
youll understandably want to celebrate.
Tiffany Wendeln Connors is the deputy editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
