Depending on how you use them, credit cards can be a great and beneficial payment option or they can feel like a deal with the devil. Millions of Americans suffer under the weight of their own credit card debt. If this describes you right now, consider the following tactics for getting out from under it.
Some people have experienced success by paying off the credit card they owe the least on first and then moving down the list until you get to the one you owe the most on. This counter-intuitive approach, which ignores interest rates, is all about behavioral modification. The idea is that by paying off one, manageable form of debt, you’ll be more fired up and mentally able to approach a bigger one.
On the other hand, you may feel ready to tackle the credit card you owe the most on. This is generally considered a good idea because that large debt is only getting bigger as interest gets tagged on. Going after the largest first is a realistic method for those who are motivated by numbers and are in touch with the fact that something really needs to be done about their debt. Otherwise, it can be excuse to never start because it’s too big a challenge.
If you have more than $1,000 in your savings, it might not be a bad idea to use the excess to begin paying down some of your credit card debt. You always want an emergency fund of some sort, of course, but credit card debt is sometimes that emergency. That $1,000 may get used sooner rather than later if your debt is bad enough that it starts causing you serious problems.
There are many ways to handle credit card debt. Above are there of the most common methods people have used to wrestle control back for their debt and start over.