(Please note we are not financial advisers, we are just making recommendations.)
CNBC posted an article in Feburary stating the average credit card debt per household was a little more than $15,000. That’s a lot of money considering many households are still paying off mortgages and car loans.
So what’s the best way to pay down Credit Card debt? Money management.
- Use app’s such as Mint to tracking your income and spending.
- Look at your daily expenses, do you really need that $5 starbucks coffee in the morning? McDonald’s also has coffee, but it’s $3-4 cheaper.
- Hold off on luxury purchases. This includes the brand new iPhone or Samsung. Don’t get me wrong, having the newest smartphone feels amazing, but if you can’t pay off your entire credit card statement this month, you can’t afford the phone.
- Pay down your highest interest card first, continue to make at least the minimum payment on your other cards, but you need to tackle your highest interest credit card first.
- You might want to look into balance transferring your debt to a 0% introductory apr credit card.
I don’t like giving advise #5, solving credit card debt with another credit card often is a destructive rabbit hole, but 0% interest will help you pay down your debt faster.
Look into credit cards such as: USC Credit Union’s Platinum Rewards MasterCard, that have 0% introductory apr offers on balance transfers. Paying a 2-3% free upfront is way better than pay 24.99% over the course of a year.
In the end, you just need to make wise decisions. If you can’t pay your credit card balance in full at the end of this month, after making that purchase, you can’t afford it. But, life does happen and unexpected emergencies can be expensive, look at this sub-reddit for information on how to build an emergency fund: click me, so you can be better prepared in the future.
Tags: Credit Card Debt, 0% Apr Credit Cards, Mint app