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Tips to manage your credit card debt

Many of us have credit card debt, and it can get overwhelming trying to pay it down while also juggling other bills and financial responsibilities. Having a consistent strategy to pay down your debt will help reduce your stress and make it easier to pay off your credit card quickly. Here are some key tips to help you pay down your credit card debt.

Move high interest debt to another card

If you have multiple cards, and some have higher interest rates than others, consider moving your debt around so that the majority of it is on the card with the lowest interest rate. This will help you pay less in interest over time, and you’ll see significant progress instead of feeling like you are at a standstill. Some financial companies offer specific cards designed for debt repayment – just be sure to read the fine print to make sure you’ll actually reap the benefits.

Make payments every time you get a pay check

When doing your budget, earmark a certain percentage of each pay check to go towards your credit card. Make sure you make the payment as soon as you get your pay check, as opposed to waiting until the credit card payment is due. If you wait until the payment is due, it will be tempting to spend the money on other things. This may require some extra planning if your pay checks vary from week to week.

Don’t close your credit cards after they are paid off

Once you have gotten rid of the actual debt plaguing you, the next step is to get your credit score up. A good credit score makes it easier to make big purchases, like a house or car. Having a high credit availability but low credit usage can help your credit score go back up over time.

If you find yourself struggling with credit card debt, don’t panic. With some smart budgeting, it’s possible to pay down your debt. Contacting a financial advisor can also help if you are feeling particularly overwhelmed by your debt. They can help you find debt consolidation options and other recovery strategies so you can get back on track.