Four Proven Ways to Help Reduce Credit Card Debt

Credit card debt can sneak up on anyone, even if you’re punctual with your bills. Paying off the whole balance at the end of every month sometimes just isn’t an option, and so your interests rates starts piling up until you feel as though you are running out of options. But the reality is that you are never completely out of options, and below are four effective methods that you can use to start reducing your credit card debt today.

Sell Your Things at Auction

There are auction groups and websites that will sell anything and everything. There might be a group on Facebook for what you’re offering, or if not, there may be an online auction site that will help you sell whatever you want to sell. If you have vehicles that you don’t drive anymore or properties that you own, but that you don’t live on, then you can easily sell to a local auction agency, or find one online that will sell it for you. Especially with larger ticket items, auctioning extra things off is an easy way to make a lot of money all at once.

When auctioning off your things, don’t forget to pay any fees to the auction house that you are under obligation for. You don’t want to add on to the debts that you are trying to pay off by auctioning your things. You also want to keep in mind the question of whether or not to set a reserve price for whatever it is that you are auctioning. A reserve price is the lowest price that the auction house will let a seller buy it for, but in some cases, you have to set that reserve or there may not be one. You should set a reserve so that you can make sure that selling this item will help you pay off all of your debt as well as cover the auctioneer’s fees.

Get a Side JobCredit Card Debt

In the modern world, there are practically thousands of side jobs that you can take in order to earn money in a hurry. Whether you work something out by watching some of the neighborhood kids or you work part-time at a service station to help pay off your debts, getting a side job is an effective way to pay off any debt, especially if you are willing, and able, to invest a lot of time in to paying off the debt.

One way that you can make the most out of a side job to pay off your credit card debt is by getting a position that actually means something to you and is something that you would be proud to put on a resume. For instance, if you work in carpentry, then make a post online about how you would be willing to build dog houses or treehouses for people in your neighborhood as a side business. Then, when you apply for a new job, you can say that you led a series of small side projects while also maintaining employment at your other construction company. Instead of only working to pay off the debt, make your debt an opportunity to improve your life in the future.

Take Out a Loan

If you are looking to pay off your credit card debt quickly, then a job may not be fast enough for you. In that situation, the fastest way to pay off debt is to take out a debt consolidation or other type of personal loan. Loans allow you to pay off your debts quickly and painlessly. You don’t have to worry about paying back various credit card companies or receiving any penalties on your card from augmenting your debt. Rather, your concern is only to repay the lending agencies. This will also free up more opportunities to explore additional options to reduce your debt.

Taking out a personal loan will result in a shorter amount of time to repay the debt and a lower interest rate on the debt, so more of your money goes towards the principal than towards the interest. On average, personal financial advisor Christine Digangi writes that debt consolidation loans take three to five years to pay of in full, while credit card debt can potentially average out to as much as five and a half years for just five thousand dollars’ worth of debt at eleven percent interest. Assuming that you want to quickly get out of debt, taking out the personal loan can be a quick, effective solution that will help you get to where you want to be.

Pay Off Cards with Higher Interest Rates First

Paying off the card with the highest interest rate first may seem like a daunting task, especially if it is a particularly large debt that you have to pay. However, since your goal is to get out of debt faster, both reducing another source of stress and improving your credit score, it is absolutely necessary. If you put off paying the card with the highest interest rate, then not only does the principal debt keep piling up, but so does the interest on that higher principal as well. That is a lot of interest to pay off, on top of the already existing debt. If you have multiple debts on multiple cards at the same time, then put the most money towards paying off the card with the highest interest rates.

After you pay off the card with the highest interest rate, it will help to boost your confidence that you can survive paying off the other cards with the lower interest rates as well. Especially if you keep setting aside the same amount of money for the lower interest card as you did with the higher interest card, then you will have some leftover funds to put into savings, or to pay off other debts. Either way, make sure to prioritize this card because it is the one that could get out of hand the fastest if not paid off in a timely, efficient manner.

These are four simple steps that you can take in order to start reducing your credit card debt today. That way, you don’t have to worry about credit card debt getting in the way of your other financial goals, and you can happily live without debt collectors pawning off your debt or calling every single day.

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