hand holding credit card

5 Ways to Cut Down on Your Credit Card Debt

Are you starting to feel the weight of your credit card debt become a burden? Have unforeseen circumstances placed you deep in the hole with your credit cards? If you’re looking for ways to cut down on your credit card debt, here are five easy tips to do it! 

[Read More: How to Protect Yourself from Credit Card Fraud] 

Stop Using Your Credit Cards 

Fairly obvious but still worth saying, the fastest way to cut down on your credit card debt is to stop using them. Switch strictly to cash-only, as studies have shown people are less likely to spend cash then they are to use a credit card. 

Pay Off Highest Interest Card First 

woman at laptop holding credit cardYou want to knock out the steepest and toughest debt you have first, so focus on your highest interest card first. You should still pay the minimums on your other cards but focus any extra cash on getting rid of your higher-interest debt first. 

Request a Lower Rate 

Call all the credit card companies you owe debt to and ask for a lower interest rate. You may not always get it, but it always helps to at least ask. If you have a lower rate from a competing credit card, mention that to help give you leverage. 

Consolidate Debt 

What some people do is consolidate their debt by getting a loan from a bank, private lender or peer-to-peer lender like Lending Club to pay off all their credit card debt. This way, you can focus on paying back just one lender with one loan payment each month. 

Create a Budget 

Obviously, the best way to ax your credit card debt is to cut the fat from your monthly expenses and use them towards paying off your debt. You don’t have to be drastic with your cuts, just small sacrifices here and there can go a long way. This monthly budgeting tool is very helpful. 

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