Tomorrow (March 21) is National Credit Card Reduction Day, presenting you with an opportunity to review your credit card debt situation and find ways to pay off what you owe.
If you have credit card debt, you’re not alone. The median debt per American household is $2,300, while the average debt stands at $5,700, according to ValuePenguin. Beyond the stress of having it hanging over you, the interest can cost hundreds or thousands of dollars per year.
On Credit Card Reduction Day, TLC Loans are here to help you reduce your credit card debt and begin your journey to financial freedom.
Before you jump into ways to repay your CC debt, you need to get the full picture of where your financial situation currently stands. The best way to do this is organizing your money with a budget planner.
There are many online (and free) budget planners to choose from. The right budgeting tool can make managing money more effective, efficient, and even enjoyable. Once you know where you financially stand, it’s time to take action and…
Analyze Your Results
With a budget now in sight, you’ll organize and prioritize your spending in a way that ensures all your needs are met throughout the month. A budget will teach you how to stop buying things you can’t afford and gives you guardrails to keep you on track; helping you change both your spending and your saving habits.
You’ll also be able to see what credit card debt you owe so you can begin to…
Pay off your Cards in Order of their Interest Rates
With credit card debt, your goal is to reduce principal to limit the interest that accrues, so your best bet is to start paying down your credit card debt with the highest interest rate. (The credit card debt with the highest interest rate means you’re paying the most amount of interest relative to the principal balance.)
Therefore, focus on repaying not only the interest payment, but also the principal balance. Once you have paid off the credit card with the highest interest rate, move onto the credit card with the next highest interest rate, and so on.
Next up is to start…
Negotiating Better Rates
Every lender has its own approach to this issue. It never hurts to give it a shot, so begin by calling up each credit card company and request lower interest rates. If you’re successful, write down your new interest rates.
If you are interested in lower interest rates, check out the best 0% APR and low interest credit cards. A 0% APR credit card gives you 0% interest on your credit card debt balance for a certain amount of time. That means you can transfer your existing credit card debt balance to a new credit card.
Many 0% APR cards offer no interest on your credit card debt for 6-24 months. At the end of the grace period, you will owe interest at an interest rate based on your credit profile and other factors. Therefore, with 0% APR credit cards, you can get a reprieve on credit card interest and pay off your credit card during the grace period.
A final way to get your credit card debt paid off, is to…
Consolidate your Debt with a Personal Loan
Personal loans give borrowers access to funds to use at their discretion and are typically unsecured, meaning they don’t require you to put down collateral to obtain the loan. While personal loans may have higher interest rates than secured loans, they often offer lower interest rates than credit cards, which is a great strategy to save interest costs.
Consolidating your Credit Card debt with a personal loan combines all your debts into one single payment. Using a personal loan to pay off credit card debt could help you save money on interest and potentially get out of debt faster.
Credit card debt costs you more than you really want to pay. And we want to see you win with your personal finances so you’re freed up to enjoy life. If you’re ready to embrace National Credit Card Reduction Day, give TLC Loans a call.
Our mission is to provide you with a solution that resolves or bridges your current troubles for an extended period of time and to provide you with a convenient and dependable source for additional cash whenever you need it! Even without a good credit score, we will work quickly to verify key details and process your loan. Your loan can be approved the same day if we have all your information. As soon as your loan is approved, we’ll send a request to your bank to deposit your funds.
We always aim for fast loan funding typically by the next business day. So what are you waiting for? If you live in Illinois, Utah, Missouri or South Carolina you can apply online here today.
Happy National Credit Card Reduction Day from the team at TLC Loans!