3 Steps to Pay Down Your Credit Card Balance

All you need is a cup and some water to be on your way to freedom from credit card debt...

All you need is a cup and some water to be on your way to freedom from credit card debt...

1.     Freeze your credit card. 

 

Literally.  Continuing to use it will only make it worse.  Holler at that debit card.  You can unfreeze it when your relationship is in a better place…

 

2.     Identify where you are over spending

 

You have a high credit card balance because you are living beyond your means. 

Are you shopping at Saks instead of Target?

Are you eating Panera for lunch every day instead of PB&J?

Did you have a big unexpected expense that your savings account couldn’t cover?

 

Are you doing all of thee above?  Stop.

 

3.     Setup a payment plan.

There are online tools that will help you figure out how to pay off your credit card balance like at bankrate.com (http://www.bankrate.com/calculators/credit-cards/credit-card-payoff-calculator.aspx)

While the news will be depressing, paying $2,500 a year in interest is definitely more depressing.

 

I promise you can do this!  You really don't have a choice so that makes it a little easier because credit card debt is financially crippling.  It will just take a little planning and self discipline (starting with #1…)