Simple Ways to Eliminate Your Credit Card Debt Faster

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Whether a sudden emergency has left you with thousands of dollars in debt or you have credit cards and payments from the past that you just can’t seem to shake, debt can cripple your credit and your ability to make major purchases like a new car or a home. However, you don’t have to live with debt forever. There are ways to reduce your debt faster and make your financial burdens more manageable. Instead of just making the minimum payment and being faced with years of debt, take a look at simple ways you can eliminate your debt faster.

Target One Debt at a Time

Even though you may have monthly payments on many debts, don’t try to tackle each one at the same time when eliminating or paying down charges. Whether it’s a car payment, mortgage, credit card, or medical bills, choose one debt at a time to eliminate. Start with the smallest debt that will be the easiest and pay more than the minimum payment each month, the more you can afford, the better. If you have a credit card payment that is only a few hundred dollars a month, choose to pay that off first.

Once you have eliminated that debt, start placing the money you would be spending on a payment on other debts. If you have a payment with a high interest rate, make sure you pay it off quickly to avoid thousands in additional costs on top of your debt charges.

credit card debt

Start Paying in Cash

If you’re like the rest of the world, most of your payments and monthly expenses will be purchased with a debit card or removed from your checking account directly each month. While paying bills may be easier and recommended that way, other monthly expenses don’t have to be bought on plastic. Budget your money each month and allow yourself only specific amounts for items like groceries, gas, and recreational purchases.

Start removing cash from a local ATM or bank. Once you have spent the money you’ve set aside for those everyday or monthly items, stop spending. Swiping a card can lead to more money than expected to be spent. Any money left over in your account can be used to pay off large debts.

Remove Unnecessary Expenses

You may love watching the local news or your favorite television show once or twice a week, but does that really justify spending hundreds each month on cable or a television service? If you rarely use your TV or rarely use a home phone number, try going a month or two without those services. Canceling or removing unnecessary expenses that you aren’t using or infrequently use can help you save even more money each month.

Reducing your extracurricular debt not only gives you more expendable cash each month, but it lets you place those balances on other more pressing debts. Start spending what you would be paying on cable on a large credit card balance or eliminate the interest on your student loans.

credit card debt

Transfer Credit Card Balances

Most credit cards will have pretty hefty interest rates. This means you’ll be spending thousands more overall than what you originally charged if you only ever pay the minimum amount. If you have a large credit card payment with interest that just keeps piling up, talk with your credit card company about transferring your debts.

Transferring your credit card payments to a lower interest rate card can help you pay off those debts faster and with less money out-of-pocket. Select a credit card with little to no transfer rates and preferably a zero-interest period that will help you quickly trim down your debt without interest piling on.

Make Twice the Minimum Payment

Minimum payments are set up to allow you to pay down your balances without putting a financial strain on your wallet; however, for large balances or interest rates, paying just the minimum payment can leave you barely making a dent in your actual total. The majority of minimum payments go toward paying the monthly interest. In order to really make a difference in your total balance, try making double the minimum payment or make a payment twice a month. One payment will affect your total balance while the other will pay down your interest.

What are your best tips to eliminate credit card debt?

31 thoughts on “Simple Ways to Eliminate Your Credit Card Debt Faster”

  1. It seems like the debt snowball method works best for most people. They key is, constantly plugging away at your balances while simultaneously avoiding spending more on the cards.

  2. These are all great!

    We also have had all of our raises and bonuses automatically moved into a separate account to pay off debt (or now that our debt is gone, save for a down-payment). Those raises don’t affect us day to day so banking them really adds up and doesn’t hurt us at all 🙂

  3. Ive realized that cutting out unnecessary expenses can save me a lot of money that I can put toward other expenses like credit card payments or big necessary items. As I become more busy in my life i realize i dont need the big cable package or multiple tvs where I live. Great Article!

  4. I think the best way to eliminate it is to not continue to build it up. It’s really hard to catch up or get ahead when you grow your balances as well as your fees. As card payments become problematic, you should definitely switch to cash to stop the credit card pain.

  5. Zero-interest transfer credit cards are ideal, but I think you need a decent credit score to get one. With that being said, it’s always the first thing I recommend to people. Once they do that it’s time to start paying that balance down!

  6. One thing I’ve noticed (I’m doing taxes this year) is hearing people say “When I get my refund, I’m gonna buy a (insert big ticket item here).”
    If you have debt and are getting a windfall like a big refund, then put it toward the debt, not more stuff. Then change your withholding a little so that you have a bit more each month to pay down your debt.

  7. All of these are great tips and should yield you results. I think the snowball method is best to eliminate debt. Another tip is to apply any tax return or bonus money on the debt, and watch it disappear in no time.

  8. These are all very useful. Similar to transferring balances, debt consolidation can be a big help. My husband and I took out a home equity loan (a little scary) to pay off $60K (!!) in consumer debt at a much more reasonable rate. We traded rates ranging from 9.49-15.99%, for a single rate of a little over 5.5%. We’ll save a lot on interest this way.

  9. My husband and I went very frugal over the last few years so we could get rid of our debt and start creating savings. That means bringing lunch to work, we have almost stopped going out on weekends unless we get creative and do something free, and trimmed down food budgets and such. It really has worked! Great tips, thanks for sharing!

  10. I like your point about targeting one debt at a time. I think it can be easy to get overwhelmed in this situation and try and fix everything at once. My sister had quite a bit of debt, but through simple planning and goal setting was able to get out.

  11. I like your tip to target one debt at a time. It’s best to get rid of one area of debt entirely than to try to maintain multiple sources for a seemingly infinite amount of time. Paying as much as you can on one single source of debt is one of the best ways to get free of debt faster. Thanks for the article.

  12. This advice is great and very helpful! It’s so important to devise a plan that will help you on your way to being free of debt. It definitely stunts your financial growth. Resources like really can help people find a starting point and learn how to pull themselves out of debt from there. Thanks so much for sharing!

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