6 ways to pay off $600 or $6,000 in credit card debt
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

6 ways to pay off $600 or $6,000 in credit card debt

6 ways to pay off $600 or $6,000 in credit card debt
 
 
6 ways to pay off $600 or $6,000 in credit card debt
 
 
Falling in debt can be easy. Getting out of debt can be significantly more challenging, but certainly not impossible. Debt reduction is an important step toward achieving a stable financial future.
Whether you have $600 or $6,000 of debt, follow these six strategies to get out of the red and back on solid financial footing.
1. Identify the debt source. Beyond fixed bills such as rent, car payments or utilities, few people have a firm grasp on where and how often they spend their discretionary dollars. Online personal finance tools can help take the guess work out of where you are spending money by aggregating your financial accounts in one place and providing a clear financial picture. Knowledge is power when it comes to your money. Once you have that visibility, identify areas where you can reduce spending or make tradeoffs. Perhaps it's eating out two days a week instead of five, making your daily coffee at home or trying to buy more household items in bulk. You may find yourself with more money to pay off your debt and establish healthy spending patterns to ensure you're never in the red again.
2. Pay off the highest interest rates first. When tackling credit card debt, take a look at the interest rates of all your cards, and sort them from highest to lowest. Many people tend to focus on paying off the credit card with the largest balance, but it's the one with the highest interest rate that can prevent you from reaching your debt reduction goal. By dedicating higher payments toward the card with the highest interest first, you'll more quickly rid yourself of the debt that has the most substantial impact on your finances.
3. Leave 'em at home. If you're working to pay off credit card debt, it's imperative you don't add any additional purchases to your existing balance. Now that doesn't mean you should race to pay off your cards and then cancel them immediately (that can actually have damaging consequences for your credit score). Ease into the mindset of using a debit card or cash for purchases you previously would have charged to credit. Leaving the credit cards at home will also give you insight into how much money you have available in real time.
4. Transfer balances. This is also known as snowballing. If you haven't reached the maximum limit on your credit cards with lower interest rates, consider transferring bills with higher interest to them. There can be fees associated with a transfer, so make sure the lower interest rate offsets the cost. This strategy also requires a fair amount of discipline to not spend on the newly cleared card while also committing to pay off the balance you transfer over. It will, however, help you pay off cards with higher interest rates in a much more timely fashion.
5. Borrow from yourself. If you're completely overwhelmed with debt, it's OK to dip (temporarily) into your savings. Just be strategic about it. Earmark a specific amount as an emergency fund that is off limits while paying down your debt, just in case anything unexpected comes up. There's nothing worse than having to go even deeper into debt when you're trying to climb your way out. If you must borrow from your savings or emergency fund, remember to replenish it as soon as the debt is paid off.
6. Look into earning more. Do you have a talent or skill in an area that people would be willing to pay you for? Try your hand at freelancing to make a few dollars on the side. You could also look into selling your unwanted possessions on eBay, picking up jobs on TaskRabbit or turning your hobby into a source of income. You might be able to generate a substantial amount of cash, all of which can be funneled to paying off debt quicker.
Debt can be daunting, but it doesn't have to be depressing. Start by incorporating these strategies into a debt reduction plan that works best for you so the process won't become too overwhelming. Taking control of your money, and sticking to a plan will have you seeing green in no time!
 

0 Comments to 6 ways to pay off $600 or $6,000 in credit card debt :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment