Read this if you’re having a hard time escaping the credit card debt maze.
You’re not alone. Many young adults face the same challenge. With the rise of Buy Now, Pay Later and No Annual Fee for Life (NAFFL) credit cards, the temptation to overspend can be really hard to resist. We know it’s a tough spot to be in but we’ve got your back to help you regain control over your finances.
So if you find yourself in the ring with credit card debt, remember that getting rid of any form of debt takes serious effort and time. The earlier you acknowledged na baon ka na sa utang, the better.
By taking proactive steps and staying committed to your money goals, you can break free from the shackles of debt. Without further ado, let’s talk ways to get out of credit card debt, for good:
Pay your minimum dues While this may feel like slow progress, paying the minimum actually keeps your account in good standing. It’s a solid foundation for your debt reduction journey.
The earlier you acknowledged na baon ka na sa utang, the better.
Consider the snowball or avalanche method These two popular approaches have saved many people from drowning deeper in debt. With the snowball method, you can focus on paying off your smallest debt first. Meanwhile, the avalanche method helps you tackle the highest-interest debt first, saving you money in the long run.
Make consistent extra payments beyond the minimum Paying the minimum barely makes a difference? Try taking it up a notch: pay beyond the minimum, even if it’s just a small amount. Try to increase this extra amount as your financial situation improves.
Negotiate lower interest rates with your bank Yes, banks can actually help you! Get in touch with them to see if they’re willing to lower or waive your interest fees. In that way, you only have to pay the total principal amount in small batches. This can make your payments more manageable, allowing you to pay down debt faster.
Set a debt elimination timeline Don’t rush it! Instead, set a timeline that works for your budget. Slow and steady progress is key.
Paying the minimum barely makes a difference? Try taking it up a notch: pay beyond the minimum, even if it’s just a small amount.
Build an emergency fund As you work on destroying your debt for good, prioritize building an emergency fund. This can act as your safety net to protect you against falling further into debt when unexpected expenses arise.
As we wrap up, remember that getting rid of debt is a gradual process — one that requires you to have trust in yourself! We hope these strategies will help you come up with your own to get you out of this tricky situation.
Just stay determined, and you’ll see your debt shrinking over time. Laban lang!