Debt elimination can reduce monthly expenditures. Debt accumulation can result from overuse of credit cards or living beyond your means. If you're tired of making high monthly payments, consider ways to get rid of credit card debt or reduce your outstanding balances.
Increase Income
Additional income each month helps speed debt elimination. Check your finances, and if you don't have disposable income to pay down balances, look for part-time work temporarily to generate extra income. This can include working after your full-time job a few days a week, or asking your present employer for overtime hours.
Sell Items
Getting rid of personal belongings can create extra cash to pay down smaller credit card debts. Rummage through your closets, garage or basement and look for old items such as jewelry, furniture or electronics. Have a yard sale or list these items for sale in classified ads. Use the proceeds to eliminate a credit card bill or at least pay down the balance.
Reduce Expenditures
Resolve to cut back on extra spending to help pay down balances. Stop eating out or spending excessively on shopping, entertainment and recreation. Learn how to entertain yourself on the cheap and start preparing meals at home. Apply the monthly savings to credit cards and other debts to lower the balance.
Minimum Payments
Get away from only paying the minimum on credit cards and start increasing your payments to credit card companies. Do whatever you can to reduce the balance. Start slow and perhaps double your monthly payment. As your income increases, begin to triple or quadruple the minimum payment. Higher payments will knock down the principal quicker.
Destroy Credit Cards
Take a pair of scissors and destroy credit cards if you have a problem controlling credit card use. Whipping out credit cards to pay for items will keep you in debt, unless you're committed to paying off the balance in full each month. Carry cash and save for purchases to alleviate debt.
Interest Rate
Help pay down balances quicker by negotiating a better interest rate on your credit cards. Some credit card companies will reduce your interest rate on the spot if you have a good credit history. A lower rate reduces how much you're required to pay in interest charges each month; thus, creditors apply a higher percentage of monthly payments to the outstanding principal.
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