4 Steps to Paying Off Credit Card Debt
When we sit down to write our resolutions for the year, our minds often go to health and wellness goals. “Eat healthier” and “exercise more” normally top the list. But did you know that paying off debt can have many positive health benefits because it relieves a good amount of psychological stress? This year, let’s put “financial wellness” on our resolution list! Here are 4 steps to paying off your credit card debt.
- Analyze your budget
Figure out how much money you make each month, after taxes. Then, determine how much of that you need for your regular monthly expenses like rent, auto loans, food, gas, etc. How much do you have left over?
- List your credit card debt
If you are carrying a balance on multiple credit cards, start by making a list. Write down every credit card you have and the amount you owe on each.
- Take one step at a time
Be sure to always make at least the minimum monthly payment on all of your credit cards. Then, choose the card with the smallest balance and tackle it first. Use that extra money that you found in your monthly budget to concentrate on paying off this one credit card. Then, when you’ve paid it off, you can use the money you were paying monthly on that card to pay off the next card!
- Consider consolidating your debt
If you’d rather only have one payment to worry about, consider consolidating your debt to a low-interest credit card with no balance transfer fee!
You can do this. Here's to a financially fit 2020!