Watching your credit card balances creep up while the interest charges pile on can feel overwhelming, but the important thing is that you’re ready to do something about it! With focused effort and a strategy, you can ease your financial load and stay in control of your finances. Reducing your balance will cut the interest you pay and help you save money in the long run. Get started by using these three tactics to help chip away at your outstanding credit card bills today.
Sometimes, all that’s needed to make progress on credit card debt is plugging all your expenses into a budget so you can see them in one place. Use your budget to track your expenditures, find where you can make some cuts, and do what you can to keep from putting any more expenses on your credit cards. This may call for some restricted living, but the progress you can make on your debt will be worth the sacrifice. Use our helpful home budget calculator to get started.
Some credit card statements or apps show how long it will take to pay off your balance at the minimum payment versus an increased payment. You can shave off time by paying more than the minimum required. Target paying more than the minimum monthly payment to reduce your principal faster. Cut expenses where you can and put any extra cash (consider including raises, bonuses and cash gifts) toward your payment. Your extra effort should lower the overall interest you pay and eventually minimize that financial burden.
Consider transferring your credit card balance to a card with a lower interest rate. Some credit cards offer a 0% interest rate for an introductory period, allowing you to transfer your existing balances and pay them off (or at least make headway) interest-free during that time. If you transfer multiple balances to one card, you’ve also consolidated your debt by reducing the number of payments.
Remember, small changes can lead to helpful results in the long run. Reducing your credit card bills is a way to improve your financial freedom and build a more secure financial future for you and your family.
Looking for more help? Check out our helpful resources and calculators. Also, browse and watch our webinars for tips on money management and good financial stewardship for additional guidance in handling your financial resources wisely.
At GuideStone®, we want every servant of Christ to finish well. Our mission is to enhance the financial security and resilience of those who serve the Lord.
For more information, contact us at Info@GuideStone.org or 1-888-98-GUIDE (1-888-984-8433) Monday through Friday, 7 a.m. to 6 p.m. CT, to speak with a customer solutions specialist.
This material is provided for educational purposes only, and we encourage you to consult with appropriate counsel and advisors to discuss your unique accounting and tax obligations.
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