By Michele Steinberg. FinanceGrrl
We’ve all heard the call: pay off your credit card debt! This current financial crisis is going to result in tighter lending standards, higher interest rates, and also golden opportunities to invest the cash you’re currently using to pay off debt.
Hopefully everyone with debt knows the basics: stop using the card; take it out of your wallet; pay off the highest interest rate first; and pay more than the minimums. This is all great advice, but here are five more ways to pay off your debt even faster.
1. Make weekly payments
The credit card companies will accept your money any day of the week. Instead of trying to save up (or not spend) the money you need to pay down your debt each month, make payments weekly. This is easy to do online, and as credit cards typically assess their interest daily, you’ll be saving more in interest every week.
2. Give “found money” a purpose
Found money refers to funds that were misplaced or forgotten and then rediscovered. A great example is $20 found crumpled in your jeans pocket when doing the laundry. Put that $20 in your wallet, and immediately go online and send $20 from your checking account to the credit card company. Get $50 from grandma? Send it to Visa. Are you paid bi-weekly? In those wonderful two months each year when you get three paychecks, send as much as you can to the credit cards.
3. Use savings
In this situation, “savings” does not mean an interest bearing money market account. Did you go out to buy a new winter coat with $100 budgeted and spend only $80? Send that extra $20 to the credit cards. Did you clip coupons and save $10 at the grocery store? Send it along. No amount is too small.
4. Sell your junk
You know you have things that can go. Get onto ebay and sell your stuff, and then send your profits to the credit cards. Make a great use of these last days of good weather to have a yard sale, and then pack up the profits for the debt companies.
5. Pat yourself on the back
Stop being down on yourself about the debt! Instead, focus on the progress you make. Celebrate any extra payment - not by spending more money - by feeling good about the progress you are making. Constantly harboring negative thoughts about your debt will only cause more harm. Focus on the good and feel proud each time you make even a small dent in the debt.
The primary concept is simple: make extra payments beyond your usual monthly payment. Do this, and the balance will go down much faster and you’ll be out of debt before you know it.
Related
Focus on the Payoff to Eliminate Your Debt
Four Ways to Legally Clear Credit Card Debt
Four Ways to Avoid Excessive Credit Card Use
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