What You Can Do to Lower Your Credit Card Debt (Part 2)

August 19, 2013

Paying more than the minimum monthly payments on your credit cards and only using them for certain purchase are ways to lower your credit card debt.

Paying more than the minimum monthly payments on your credit cards and only using them for certain purchase are ways to lower your credit card debt.

Continuing from What You Can Do to Lower Your Credit Card Debt (Part 1), the following is some additional advice regarding what you can do to reduce your credit card debt and, ideally, improve your credit score and overall financial standing.

  • Pay more than the monthly minimum payment – If you are only paying the monthly minimum payment on your credit card, you are essentially only paying off the accumulated interest on that card (i.e., you are not paying down the principal balance). This means that, if you continue with this practice, you could be spending hundreds to thousands of dollars more than necessary trying to pay down your credit card debt. To avoid this, make sure you are paying more than the monthly minimum payment on your credit cards – even if it’s only $20 more than the minimum. If you have multiple credit cards, consider focusing on paying more on the card with the highest interest rate first until that card is paid off. 
  • Only use your credit card for certain purchases – Instead of using your credit card to buy everything you need, you may consider only using it to make certain purchases, like your food and gas purchases. Limiting when you use your credit card can prevent you from overspending with it, allowing you to reign in the amount of new credit card debt you rack up each month.
  • Consider using cash for some purchases – Although you may not want to always carry cash on your, it can be a good idea to use cash instead of credit cards to make some of your essential purchases. In fact, some studies have shown that people who use cash instead of credit cards are more aware of the amount of money they spend and, as a result, tend to spend less money in general.

Colorado Bankruptcy Lawyers

If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.

Categories: Bankruptcy, Blog, Credit Card Debt, Credit Cards, Debt Relief, Financial Tips