While credit cards have given us higher buyer power, they have also left a huge number of people in serious debt.
Today, national figures indicate that over 189 million US citizens own credit cards and the mean credit card debt on each household is around $8,400.
Getting out of credit card debt can seem like a daunting task right now. But with a few changes, there are some easy ways you can manage your debt. Here are a few tips to help you get started.
1. Document all your debt
The first strategy to overcome debt is to take a look at the big picture. Prioritize using the Avalanche Method.
Write down all of your debts and identify ones that are high priority items. For example, some credit cards may have high interest rates on them. This means you may want to focus your repayment efforts toward those.
2. Focus on one credit card first
According to national statistics, the average American credit card holder has 2.6 credit cards. While getting rid of your total debt may seem like an impossible feat, focusing on one will make the goal seem more achievable.
In addition, when you clear one credit card of debt, it creates a sense of accomplishment and will encourage you to reach your ultimate goal.
3. Cut spending on small, repeated items
Assess if there are any unnecessary spending on your bills. Examples include eating out too often, using an Uber instead of the subway, unused memberships and subscriptions.
A little change can go a long way and save you thousands of dollars over the course of a year.
4. Renegotiate interest rates with your creditors
Sometimes, renegotiating interest rates can be as simple as making a call to your lender and asking for a lower interest rate—given that you have a good credit score (a score of 730 or higher) and are a long-term customer that makes punctual payments.
Even getting a few percentage points decreased can add up to a lot. Credit score specialists can help boost your score and make you applicable for lower interest rates.
Oak Credit Repair offers fast credit repair services in the US at an affordable price. To learn more about how much money you can save with a better credit score, call us at (248) 621.4488 or fill out this form for a free consultation.