Millions of Americans suffer from immense credit card debt. In some cases, the only relief is to file for bankruptcy. While numerous outlets have advice on how to pay off debt, everyone’s situation is different. A course of action that works for one person may not be best for another.
You need to have a solid game plan in mind, so you can pay off the debt as quickly as possible while paying as little interest as you can. Avoid these mistakes on your journey to getting free of debt.
1. Charging more to the credit card
Once you make good progress on debt, you may not see the harm in making more purchases to your credit card. However, you can instantly undo all the good you just did. As soon as you start drowning in debt, you want to avoid making any more purchases until the card is completely paid off. Use your debit card for the time being.
2. Failing to cut lifestyle expenses
In order to adequately tackle debt, you need to determine what you need to live and what you can do without. This may mean forgoing a nice vacation until you clear the debt. This will allow you to put more money toward paying off the debt, and it will be gone sooner.
3. Not putting extra funds toward paying off the debt
You will naturally feel excited upon getting a raise, but you need to be responsible. Instead of going on a shopping spree, you need to determine how much more money you can put toward paying off the debt. Additionally, you may want to think about earning some side income during this time. Finding a part-time gig for a few extra hours a week can really help in the long run.