Credit card debt is a serious issue for many people. Breaking free from the hold of credit cards is very possible. It requires discipline, determination, and commitment. If you have what it takes, than anything become possible.
Let's go over some secrets that will help you get out of credit card debt.
Secret # 1: Take Advantage of 0% Offers
Zero percent credit cards are there to entice you to apply...and you should if you're carrying balances. Yes, there is a small fee for transferring a balance but it's worth it. If you have 0% for 6 months or a year, you can use that time to make a big dent on the principal. Then after the 6 months is over, you can transfer it to another 0% card. I've seen people do this over and over and they avoided paying a lot of money in interest.
The trick is to find good offers. Look for it in the mail or the internet. There are some that have it for a year or more. Those are the best ones. Make sure to read the fine print and double check that balance transfers are eligible for the 0% rate too.
Secret # 2: Don't Pay The Minimum Only
Paying only the minimums on your credit cards will keep you in debt for a very long time. Balances will take forever to reduce and interest over the years can pile up into the thousands.
What you do is pay more than the minimums so anything other than the interest goes towards reducing the principal balance. That means that next month, your interest is calculated on a lower balance, meaning less interest for you. This will help you pay off your credit cards much faster.
Secret # 3: Pay The Highest Interest First
If you're getting charged 20 something percent on a credit card and only 10 on another, you should pay towards the higher one first. This way you're paying less towards interest. Once you're done with that balance, then move on to the lower interest credit cards.
A lot of people make the mistake of going towards the higher balance first, but the credit card with the highest interest is the one that's costing you the most amount of money.
Secret # 4: Pay Off Credit Cards With Savings
It's a general rule to have at least 6 months of living expenses saved up. I've seen some people who have much more than that and also have tons of credit card debt. This doesn't make any sense. What's more beneficial for your wallet? Earning a small percentage on your savings or paying a high percentage on your debt? You're losing money with this method of saving.
I've been in credit card debt before and using these and other techniques, I've learned how to get out of credit card debt fast.