Learn 7 Ways to Manage Credit Card Debt

5. Use a credit card with a 0% APR on balance transfers.

A 0% APR balance transfer card is worth considering if you want to avoid paying a lot of credit card interest charges. It enables you to transfer your existing credit card debt to a new card and avoid paying interest for a specific period of time, often six to 18 months.

Remember that you’ll normally need good credit to qualify, and you’ll almost certainly be charged a balance transfer fee – typically 3% to 5% of any sum transferred. In addition, once the introductory APR period expires, interest will begin to accumulate at the card’s standard rate. Before you apply for a balance transfer card, make sure you’ll be able to pay off the balance at the conclusion of the introductory period, or you’ll be back where you started.

6. Examine your monthly spending patterns

You almost certainly have certain expenses that you can minimize or eliminate entirely. Examine your monthly spending habits and come up with inventive strategies to spend less and save more.

If you have a gym membership that you rarely use, you might cancel it. You might also choose to cook the majority of your meals at home rather than ordering takeout or dining out. Another alternative is to downsize to a smaller apartment or house or to find a roommate to split living expenses.

Every change in your spending habits, no matter how big or small, can help you pay off credit card debt. The less you spend, the more money you’ll have to pay toward your credit card debt.

7. Think about getting a debt consolidation loan.

A debt consolidation loan is an unsecured personal loan that allows you to consolidate various debts into a single loan with a lower interest rate and fixed repayment schedule. This technique can make paying off your credit cards easier because you’ll just have one payment to think about instead of many ones.

You may also be able to save hundreds, if not thousands, of dollars in interest costs and pay off your credit cards more quickly. The disadvantage is that unless you have outstanding to excellent credit, it might be difficult to qualify for the best rates on a debt consolidation loan.

You may also have to pay loan fees, such as an origination charge. Furthermore, a debt consolidation loan would be ineffective if you are inclined to use your credit cards again. Nonetheless, this form of loan can be a smart alternative for consolidating high-interest debt and getting out of debt faster.