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Credit card debt can build up really easily and can seem hard to pay off. However, it need not be as difficult as you might think. Look at the tips below and you may be able to use one or all of them to eliminate your credit card debt.
Use a loan
It could be sensible to get a loan to pay off your credit card debt. This may sound like a cheats answer but it isn’t! The interest and costs of a loan are often a lot less than that of a credit card. Therefore if you swap the borrowing from card to loan, you will end up paying it off more quickly as it will be cheaper. You will also be committed to a repayment each month rather than only paying off the minimum.
Pay more than the minimum each month
By only paying off the minimum repayment each month you will be only covering the cost of the interest and not repaying any of the borrowed money. Pay more than this and you will start chipping away at the debt and this will help you to get it paid off more quickly.
Use your savings
If you have any savings then chances are that the interest they are earning is very much less than what you are paying on the card. If this is the case then it is financially wise to use the savings to pay off the credit card.
Stop using the cards
It is really important to stop using the credit cards. Cut them up if you have to, but you do not want to keep spending more money on them. This will not help you to pay back what you owe. Not only will it make it harder to pay back but it will be demotivating as you will not see the debt disappearing so it may feel that it is not worth bothering to try to pay it back.
You will need to cut down your spending in order to free up some money to repay your loan. It is therefore worth thinking about where you may be able to spend less. Try not to buy luxuries for a while, live off food that you have in the larder or freezer and pick lower priced items when you do buy things. Little savings here and there can make a big difference and you will not have to be frugal forever, just until the debt is paid.