Trying to get out of debt but seem stuck in the credit card carousel? Since credit cards tend to have the highest interest rates of any type of loan, paying off in full can be very difficult. This is especially true if you have large balances or multiple cards. Here are a few tips you can use to get rid of that credit card debt.
- Use a calculator. I’m not just talking about a normal calculator. If you’re looking to tackle an impending credit card balance, you can use a credit card withdrawal calculator to see what it takes to withdraw your credit card balance and what you can change to meet your repayment goals. Try ours out here: https://cucalc.org/014468/payoffcc.php
- Use the debt snowball method. If you’re a regular reader of Savings Corner, you know Dave Ramsey is one of my favorite finance gurus. I would say the debt snowball is Dave’s trademark. Whenever I hear someone talking about getting rid of debt, they are likely bringing up the debt snowball – paying small balances first and working their way up to larger ones regardless of the interest rate. If that sounds like the plan to you, read more here: https://www.ramseysolutions.com/debt/how-the-debt-snowball-method-works
- Consolidate into a personal loan. If you have multiple credit cards with larger balances and are committed to getting rid of the debt, a debt consolidation loan may make sense for you. The idea here is that you combine all of your outstanding high interest credit card debt into one big loan with a lower interest rate. This can save you a lot of interest. The two most important things about this are: the interest rate will be lower and the loan will be closed, not revolving. You pay it out at the end of the term instead of staying on this credit card carousel. One major caveat, however: you have to be disciplined and CANNOT put these credit cards into debt. Otherwise, you’ll just dig yourself deeper. If this sounds like the best option to you, Coosa Valley Credit Union offers one of the lowest personal loan rates right now. We would be happy to help you get on the right path financially!
Whichever method or methods you choose, a focus on reducing credit card debt is always a smart choice!