To put it simply, reducing credit card debt is as easy as preventing it from increasing and by paying off what it is currently. But then people wouldn’t have credit card related problems in reality if it was simple to reduce credit card debt. We can eliminate credit card debt problems or at least reduce them significantly.
The first step is to take stock of your situation. What you can do is list the balance of each credit card, the payment due date, APR, and reward points earned when you’ve drawn up a schedule of all of them. Work out which card is contributing most to your debt – this will be the card with the highest APR and the highest balance.
Check the reward points scheme and see if they can be used to make partial payments, cover fees or be used to purchase items that you might have used the credit card to purchase.
There are ways to reduce credit card debt and consolidation loans is one of them. Your debt can also be reduced with the help of a balance transfer. Transferred to the card with the lowest APR is your credit card debt. The best way to reduce your debt is curbing spending on the cards while repaying the debt you already built up.
Using cash instead of card is another preventive measure to reduce credit card debt because hard earned cash is more difficult to get out of your pocket. By not adding more to your debt, you reduce your credit card debt. Finding additional sources of income and saving money in terms of fees and interest can help you repay debts quicker.
To control spending on your credit card, you may need considerable amounts of self-discipline since we’re used to using the card when we shop. One drastic solution is to cut up all but one card which should be kept for emergencies only. You won’t be able to use them and can only spend available cash after you’ve paid the bills.
Reduce credit card debt the same way you built it up – a little at a time. For most of us, we’ve seen our credit card debt spiraling out of control over a considerable period of time. You can reduce if not eliminate your debt completely if you reduce the debt one payment at a time with discipline and patience.