The problem with credit card debt is that it’s easy to get into, but hard to get out of. Reducing your credit card debt means self-discipline and planning in the way you approach money.
First off, reducing credit card debt means slashing into the spending you make on your credit card. To be clear, we’re talking about debt you leave on your credit card–not purchases you make today and pay off tomorrow.
Reducing credit card debt, most importantly, means spending less on your credit card. Go shopping with cash instead of your credit card. Then, as you purchase items, ask yourself if you really need them… or if it’s just an impulse sale.
If your purchases are absolutely necessary, use the cash on hand to buy them. Having a wallet that’s either thick with banknotes or almost empty is a great psychological tool for not overspending when shopping.
Credit card debt can also be reduced by consolidating debt from high APR credit cards to low APR cards.
By consolidating your debt on a low APR card, your debt accumulates less interest. This means you will be charged less extra money on your debt.
Another benefit of consolidating is that card issuers frequently offer a grace period where either 0% APR or an extremely low APR is offered. This special APR is issued for the transferred amount for a limited duration of time.
There’s also the method of seeking credit card debt counseling, and getting external helpers. A non-profit consumer debt counselor can negotiate a reduced repayment rate with your card issuers and help you financially.
As always, speak with a certified financial professional and seek out their advice before making any decisions on how to best reduce your credit card debt.