You can feel the weight on your shoulders when you are in credit card debt, believe me, I have been there and spent years trying to get out, and fortunately did, so I know for a fact I will not travel down that road again. I guess the first obstacle is admitting you have a problem, and then it can be time to fix the issue. If you are looking to start a new chapter in your life where you are debt-free, it is time for a life adjustment.
Use Cash Instead of Credit
With the ease of shopping online these days you can buy with a few clicks (or even one-click if using Amazon), so you don’t even see the transaction of money, until you get your statement, which since it arrives a month later, you could have done plenty of damage by then. If you cut off using your card and give yourself a set amount of cash to use on spending, and only that much until the next paycheck, maybe seeing the money actually leaving your hand and going into the cash register will be enough to rid yourself of any impulse purchases.
Ask for Reduced APR
If you are carrying a credit card balance you are deep into interest payments, so you know by only paying the minimum payments you are doing little to chip away at the principal balance, so unless you can make a few huge payments quickly to pay off the entire balance, you will continue to be charge a ton on interest. If you make a call to the credit card company and try and negotiate your APR by using your perfect payment history and length of customer as leverage, you could be successful.
Try a Balance Transfer
If you are unsuccessful in getting your APR reduced on your credit card balance, your next may be to move the balance to another card that will be a better deal on a balance transfer, whether it is a card you already have open, or even applying for a new offer you receive in the mail. Some of the great promo rates out there you can pay zero interest for periods such as a year, which can really bring down the balance if you can make large payments during that time. There will most likely be a fee associated with the transfer, so keep that in mind, but I’m sure it will be a lot smaller than what would you pay in interest if you kept it on your current card.
Target High APR or Small Balances
When you are making the life change in getting out of debt you should be targeting a payoff plan, whether that is paying off your high-interest cards in order first, or you can even pay off your small balances first and then focus on the larger one, at least this way it can give you a sense of accomplishment if you start to see your outstanding balances go away.