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Best Ways to Pay Off Credit Cards - Without Depriving Yourself - One Easy Tip

By Edited Jun 12, 2016 1 2

Picture this, you are at the store, and you realize as the cashier rings up your purchases, that you actually bought more than you really came in for, so you cross your fingers behind your back when you hand her your credit card and hope it goes through..

Best ways to pay off credit cards - If your credit cards are constantly close to the limit, then you are in danger of going over, unless you have been watching and work these purchases out to the penny. But if you were crossing your fingers, and the purchase went through, you breathe a sigh of relief. But what you don't realize, is that credit card may just be one of those ones that LETS you go over the limit.

Card Bills - Best Ways to pay off Credit Cards - Many of the credit card companies now, will let you go over your approved limit and then charge you for it. So, if you already are carrying a balance on your card, then you go over the limit, you are now most likely faced with a "over the limit fee".

I have one credit card that if you even go over the limit by 50 cents, they tag on a 25 dollar over the limit fee. I mean this can be good in an emergency, but in reality this is just another charge, and this should be a sure fire sign that we are using that card way too much!

Best Ways to Pay off Credit Cards - Is to take the time, maybe an hour or so on the weekend and lay out all your statements. If you have more than one card bill, then get them all out.

Now most experts will tell you to pick the one with the highest interest rate and start throwing more money at it. In reality, this can work, but if we are already feeling beaten up and scared, and we figure out it will take years to get rid of this card bill, then we are not likely to stick to it.

On the other hand, if you have a smaller one, that has a balance, no matter what the interest rate, and you can trim some of your expenses enough to maybe double what you pay on it, say an extra hundred or so a month, then you can quickly figure out how long this will take you. One of the best ways to pay off credit cards is to start with the smallest one, so that you can get rid of it quick and then pat yourself on the back, when it is done. This will inspire you to continue. Even the smaller ones cause us stress.

Pay off Credit Cards - Try and Consolidate - Another good way is to look at the balance on the lower interest card. Do you have room on this card to maybe consider transferring any balances. This is call consolidating card bills. Example: If you have a 10% interest credit card with a credit limit of 8000.00 dollars, and you only have a balance of 1000.00 dollars on it, then phone them up and see if you can transfer the balance from a higher interest card onto this card.

This way you lower the amount of card bills you will get. You will still have the balance, but your payments will go further. If this is not possible, then try the first suggestion, paying off the smallest one first. Keep paying your other bills, but trim back some of your groceries, or bundle your cell phones or internet or TV into packages which are cheaper, eat at home a few more times. Try and find some extra money without depriving yourself too much and really put all your efforts into this lowest balance card bill. Rather than trying to give extra to them all.

If you try and pay everyone a little extra, you really don't get as far as you would like, and it will seem like it will take way too long. By concentrating on just one at a time for the extra payments, it will snowball quicker.

As humans we need to feel a sense of accomplishment, and since we are already feeling beaten up with our money and paying off debt, it can feel good to get one paid off in a reasonable amount of time. If we can see the light at the end of the tunnel, then just like a diet, we are more likely to stick with it.

I feel this is the best way to pay off debt. If you can get rid of one in a matter of months, you will work harder at it, because that seems reasonable, but to work so hard to find out it will be years to get rid of it, is harder on the soul. So, start with that small bill, you will feel elated when you get rid of it. Now take that same money that you have learned to live without, and pick your next project.

Best ways to Pay off Credit Cards - Think of this as starting with the foothills, and slowly working your way up that mountain. Each hilltop will feel like an accomplishment.

So, don't just look at your mountain of credit card debt as a whole. Break it down into smaller foothills. If you can't combine any of them into one bill, then try this method of working on the small ones first. That gets them out of the way, and done. Even by just paying off the smaller card bills, your stress levels will fall. All of these bills can become a juggling act, so see if you can get rid of them one at a time. Each one will make you feel better.

There is so much information out there on the best way to pay off debt or the best ways to pay off credit cards. But at the end of the day, your best line of defense is knowledge. Know exactly where you stand with your money, come up with a game plan, such as the suggestions above, and then go for it. Stick to it, and you will get there, and feel great.

Also see:

How to Pay off My Debt - Don't Work for Free

How to Pay off Bills and Avoid Late Payment Charges - Don't let The Suck You Dry

Saving Money for Your Wish List

I just Lost My Job Now What

Stop Foreclosure - Before the Computers Do It For You

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Comments

Jan 1, 2011 4:42pm
Lynsuz
Great tips. Credit card debt can be a major problem for many. Especially now after all the gift buying for the holidays. ^^
Jan 14, 2011 7:31pm
dpeach
I love the idea of paying on the smallest balance as much as you can to knock it out. It really is a motivator.
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