Paying Down Credit Card Debt
Just when you thought 2020 was devoid of good news for Americans – here is a small financial reason to smile! U.S. consumers paid down a record amount of credit card debt this past year.
Tips to paying down credit card debt
Paying off credit card debt can seem daunting – especially if you’ve amassed quite a bit. But with determination and some solid advice, living credit-card-debt free is possible. Here are some tips from Credit.com to get started in the right direction:
- Get organized – Gather all the information for every card on which you’re carrying a balance. Note the balances, interest rates, due dates and minimum payment for each card. Add up all the minimum payments on each of your credit cards to determine how much you must pay each month just to stay on top of credit card bills.
- Consider paying off the card with the highest APR first –Try boosting your payments on the card with the highest APR and paying the minimums on the remaining cards. Once that card is paid off, move on to the card with the next highest APR.
- Or consider paying off the card with the lowest balance first –This may be a method that’s easier to stick to for those who have a difficult time staying motivated without quick gratification. Enjoy the feeling of paying off that lowest balance – then keep paying off from there!
- Create a budget –If you’re not spending within your means, you’ll likely never be able to pay down debt. Create a budget that works for you, leaving wiggle room to pay down that credit card debt. WEBudget is the perfect tool that shows your spending and allows you to create your budget. Check it out in WEOnline Services.
- Be realistic – It’s important to remember that you still need to spend money on necessities (food, clothes, rent, etc.). So be realistic about how much you can put toward your credit card debt each month.
- Schedule Payments – You can schedule ongoing payments in WEPay. You set the dates and amounts. Making it easier to stay ahead and payoff items quicker.
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