5 Simple Steps To Pay Off Credit Card Debt Fast

If you're struggling to pay off credit card debt, you're not alone. In fact, according to a report from CNBC, the average American household has over $7,000 in credit card debt. But don't worry, there are ways to get out of debt fast. Here are five simple steps you can take to pay off your credit card debt quickly. With a little discipline and commitment, you'll be on your way to financial freedom in no time!

How To Pay Off Credit Card Debt Fast

Debt Elimination Starts With A Budget

Creating and adhering to a solid budget plan is one of the best ways to stay on top of your finances when it comes to debt elimination. Preparing a budget that works for you requires a bit of discipline, but the payoff can be tremendous when working to pay off credit card balances. Even a budget with small amounts of money allocated towards paying down credit card debt can make a big difference in your financial well-being. With careful planning and keeping track of where your money goes, you can establish yourself as the master of your budget rather than your credit card balances controlling you. Stay on top of your spending and find ways to cut costs with the help of Rocket Money, and experience the power of smart technology to assist you.

Pay More To Reduce Credit Card Balances

Credit card debt elimination can be a difficult task, but paying extra cash than the minimum owed each month is a surefire way to succeed. It also makes financial sense to use either the debt snowball or debt avalanche methods as they will help you pay off debt faster and gain financial freedom that much sooner.

With the snowball debt elimination method, you pay down the credit card with the lowest principal balance first and then move to those with higher principal balances. The snowball debt elimination method allows you to see quick progress and motivates you early on in your debt elimination journey to quickly gain momentum.

The avalanche debt elimination method entails paying down credit cards with the highest interest rate first before tackling lower-interest credit cards. This method makes more sense for your bottom dollar as you will save more money from paying higher interest; however, paying debt is more emotional than mathematical for many people in debt, and paying the higher interest rates first could backfire as noticeable progress can take more time. This method does work for some, but if you’re the type that needs to see quick progress, the debt snowball method is the better option to keep you from getting discouraged.

Whichever debt elimination approach you take, paying more than the minimum payment each month will lead to a quicker road to becoming debt free - and that freedom is worth it in the end. It will change your entire financial situation and outlook.

Negotiate With Credit Card Issuer

Negotiating with your credit card issuer can help you pay off your credit card debt faster. You may be able to reduce the amount of debt owed or get a lower interest rate on your debt. Depending on your situation, calling and explaining your financial hardship to the issuer can also result in debt forgiveness.  Many creditors are willing to reduce their interest rates if you provide them with a compelling reason. After all, they work for you and would prefer to keep your business in the future. However, it's important to remember that debt forgiveness on a credit card may result in the debt being reported as taxable income. Talk to your accountant or tax advisor about your debt elimination plans so there’s no surprises when it comes to your credit report or annual tax filing.

Make More Money To Pay Off Credit Card Debt Fast

Making more money with a good side hustle or a same day pay job is an excellent way to pay off credit card debt fast and be well on your way to debt elimination. One of the best methods for earning extra income quickly is to take on a side hustle or side gig in addition to your full-time job. There are many side hustle ideas, like a dropshipping business, dog walker, content creator, t shirts screenprinter, online store reseller, and the list of side jobs goes on. Some side hustle gigs are even a great way to earn passive income once they're established. Check out the list of side hustles that you can do in your spare time starting now to earn money, pay off debt, and build savings. Side gigs can help you pay your debt faster by allowing you to make multiple payments per month.

Another option for increasing your income is to ask for overtime or look for opportunities for a raise at your full-time job so that you can get paid more, and put a bigger dent in your credit card debt. You must find time in your schedule to squeeze in some extra work at your job and get paid for your extra business services. It’s the fastest way to financial freedom from credit card debt.

Making extra money does not have to be challenging, and it can go directly toward paying off your credit card debt quickly with more payments or a higher balance paid on your credit card debt. Whether it's a great side hustle or overtime work, making more money to pay off credit card debt is worth the sacrifice for the freedom that awaits. So take action and kick those creditors to the curb.

Contact A Debt Settlement Company As A Last Resort

If you're unable to pay off your credit card debt, even after trying all of the methods listed above, it may be time to contact a debt settlement company for credit counseling. Debt settlement companies offer free credit counseling services and may provide the help you need to reduce interest or eliminate credit card balances. Keep in mind that these businesses are also trying to win your business as a customer, so be skeptical of "too good to be true" offers from a credit counseling service "best deals" until you've explored the pros and cons and consulted with a trusted financial advisor. Credit counseling and debt settlement is a pay-to-play service, so be cautious of what you sign up for.

Debt settlement companies also help negotiate with creditors and get them to accept lower payments, lower interest rates, forgive some of your debt or forgive the total amount entirely. If you're getting slapped with late fees, this is a good course of action for you to pursue. However, it's important to remember that debt settlement companies have fees associated with their services, and it can take a while before they're able to negotiate with all of your creditors if you have a lengthy list. Regardless, debt settlement companies can be an effective last-ditch effort for those unable to make payments and pay off their credit card debt without help. It's a smart move to avoid continuing to rack up late fees. 

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Conclusion

If you want to get out of credit card debt quickly, you need to be proactive and intentional with your money. Make a budget and stick to it so you know where every dollar is going. Then, pay more than the minimum payment each month to make headway on the balance. Negotiate with debt elimination companies to reduce your payment or lower your interest rate. Lastly, find ways to make extra money with a few good side hustles and over time work so you can throw even more money at your credit card debt payment each month. If you hustle and stay disciplined, you will be well on your way to financial peace. So what's holding you back? Get started today so you can breathe easier and sleep more soundly with the financial peace of a zero balance on your credit cards.

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