Paying off credit card debt can be really frustrating, especially if you don’t have tons of money coming in. In this video, I’ll talk about all of the tips and strategies I use to help guide my clients to pay off their credit card debt fast and lead them on the road to debt freedom.
Get your credit card debt organized
Start by writing out all of your credit card debt. Write out the creditor’s name, balance, monthly payment, and due date. You can either write it out on paper or do it on Google Sheets. You can grab my Free Credit Checklist here.
Negotiate a lower interest rate for your card
This is by far the fastest and most efficient way to pay off your debt faster. The reason is because that each month that you have a balance, your interest is accruing which makes it harder and longer to pay back. You’d be surprised how many times credit card companies are willing to lower your interest rate to keep your business.
Know Your Budget
Before you call your credit card company, know how much you are able to commit to paying each month. I walk you through the entire process of budgeting in this simple Money Master’s Challenge where I give you the resources and templates to help you pay off debt quickly. I love using a few different resources to budget, besides Google Sheets. Of particular interest, I love Mint.com and You Need a Budget.
Leverage Payment History
Another great tip is to leverage your credit card payment history. If you’ve been paying on time, but are struggling to pay off the balance, chances are you can leverage your good standing with the company. Try to make several on time payments before you make that phone call.
“Hello, I’d like to explore lowering my interest rate. I’ve been a customer of XX many years and I’d like to continue doing business with your company.”
Remember that this is starting a conversation about your story. Talking to your credit card company can be overwhelming, but with a strategy, it is possible to save money using this method. Take deep breaths and practice what you are going to say before you make the call.
Related article: How to maximize your credit score
Know your story
The chances are that the agent will need to know why you are struggling to make a payment or why you would like a lower interest rate. If you’re trying to get a lower payment, you’ll need to explain why you are struggling financially. Maybe you lost a job, had a career transition, or went on maternity leave. It’s important to know your story before you share so that you can communicate your story clearly. Othe details like when you started having issues paying and how much you can afford to pay monthly can also aid the person chatting with you to see about providing you with an affordable plan.
Related Article: How Credit is Calculated and How to Improve Credit
Ask for help
Sometimes your credit card debt may be more than you feel comfortable negotiating. That’s where financial professionals come into play. As a financial coach, I aid and assist my clients in reaching their financial goals. I not only help my clients save time and money, but I also give them clarity and emotional support while they overcome setbacks to start leading their financial goals. Book a free consultation today.