To pay down credit card debt quickly, you typically need to pay more than the minimum balance. But you should always pay that minimum, even if that’s all you can pay. High inflation and credit card interest rates have made staying on top of finances that much harder for many people.
If you get to the point where it’s too hard to make your monthly payment, follow these tips to lighten the burden of debt:
Budget your finances
Add up everything you spend a month and compare it to your monthly income. This will give you a good idea of what you have leftover. You may also find you can cut back in areas like entertainment (like a streaming service), eating out, and recreation, allowing you to put more toward your debt each month.
Talk to your credit lenders
Call your credit card lenders and explain your situation to see if they’ll lower your monthly payment until you can get back on track. They’ll likely want to know your income, expenses, and how long you need to lower your monthly payment for.
Get credit counseling
Credit counseling agencies provide free credit counseling with certified credit counselors. They will help you make a budget that works for you and plan for the future. Your counselor may also recommend a debt management plan, allowing them to work with your lenders to consolidate your monthly payments and reduce your interest rate.
Stay away from debt settlement companies
Although a debt settlement company may be able to help you negotiate a lower payout, it comes with high risk. They advise stopping payment on all credit cards to try to negotiate a lower balance. But there’s no guarantee a lender will agree to settle. Not paying your credit cards will incur penalties, damaging your credit score.
Don’t use your credit card
Disconnect your card from any virtual platforms and accounts, and take any plastic out of your wallet. If you can’t access it, you’re less likely to slip up and use it.
Make a plan
Ultimately, having a plan of attack means you’re ready to embrace paying down your credit card debt, so choose the one that works best for you.