Millions of Americans now face higher minimum monthly payments as credit card balances surge higher.
But financial experts say it's not all doom and gloom. Here are their best tips to help reduce debt and regain control of your finances.
You can contact your card issuer and ask for an interest-rate reduction. Good, long-time customers have a better chance of gaining this grace.
Pay Down Your Debt Faster By Lowering Your Interest Cost
Pay More Than the Minimum
It can save you thousands of dollars and accelerate your debt payoff by several years. Even small additional amounts help.
Consider the Snowball Method
You start by making the minimum required payment to each credit card, except for the card with the least debt remaining. Next, send as much as you can afford to pay to this card and repeat this process each month until the balance reaches zero.
Try the Avalanche Method
With the Avalanche Method, you will pay the minimum required payments to the credit cards with the lowest interest rates, then send as much as you can afford to pay towards the credit card with the higher interest rate.
Use Free Online Resources
You can also find helpful websites and online tools to help you develop a strategy to pay off your credit cards and monitor your progress.
Of course, to successfully pay off your credit cards, you will need to avoid accumulating additional debt.