Ways To Pay Off Credit Card Debt

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Ways To Pay Off Credit Card Debt

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November 09, 2016

Credit card debt is a huge burden on many Americans.  Once you have accumulated the debt, it feels like it is impossible to get out from under.  While getting your current spending under control is the first step (and you may need a financial counselor to help you); there are some things you can do to help pay down the debt.

Here are some strategies on paying off that credit card debt.

 

  • Paying more than the minimum.  This is a must.  Dig through your cash flow and find a way to cut out expenses, so you can increase your monthly payment to the credit card.
  • Use the calendar to your advantage.  If you can make more than a minimum payment, a proven way to pay more is by make separate additional payments.  Try making a separate half payment every 14 days.
  • Laddering.  Most people with credit card debt have debt on multiple cards.  Make a list of all the cards, what their interest rate is and what the monthly payment is.  Most times the best course of action is to pay the highest rate cards first.  But if you find that you have a few small balances, it is best to pay them off quickly, so you free up more cash flow for payments on the other cards.
  • Ignore the debt settlement companies.  I know they sound like they can solve your problems, but their strategy usually ends up screwing up your credit.  After you pay them a fee and possibly a monthly retainer, they tell you to stop making your payments and build up your cash.  They then try to get the credit card companies desperate to negotiate a reduced payoff settlement.  Just don’t do it.

 

If you just can’t get that debt paid down, look to a financial planner or other legitimate source.  The National Foundation for Credit Counseling is another good place to get help.  www.NFCC.org

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affliate of Kestra IS. oXYGen Financial is not affliated with Kestra IS or Kestra AS.  Kestra IS and Kestra AS do not provide tax or legal advice.

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About the author

a man wearing a suit and tie smiling and looking at the camera

Van Pappas

Vice President, Private CFO®

Van Pappas, CFP® - Van is a native of Atlanta. He holds his undergraduate degree in Finance with an emphasis in Real Estate. As a planner for 15 years, he earned his CFP designation from Kaplan University. He is currently the Chairman and founder of the Chamblee Chamber of Commerce and sits on the Downtown Development Authority for the City of Chamblee. In 2012, he noticed the value of helping the X-Y Generations and decided to merge his practice with oXYGen Financial.

Background and qualification information is available at FINRA's BrokerCheck website.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

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