Keel Associates Discusses How Bloggers Are Paying Off $1000s in Credit Card Debt
According to USA Today, the average household in this country carries $6,354 in credit card debt. Business Insider states that if one just examines households that carry a balance on their credit cards, the average credit card debit rises to over $9,300. In this country, 40 percent of credit card holders can pay off their balance each month, but the other 60 percent cannot.
WalletHub found the average interest rate on a new-offer credit card is over 19 percent, while the average interest rate for an existing card is 14 percent. At these interest rates, people find it more difficult to pay off their credit cards. Keel Associates, a firm that helps consumers with debt issues, is often asked what it takes to pay off thousands of dollars of credit card debt. The following are some tips.
Budget Strictly –
The first step in any financial problem is to create a really strict budget. That involves not just carefully estimating your monthly expenses but also taking into account those yearly expenses as well. You need to first determine your ability to actually pay down the balances of these cards with your current expenses and income.
Budgeting Through Multiple Debit Card Accounts –
One little trick that you can use is to put money from your paycheck for your monthly and yearly bills – like your cell phone, cable, utilities, credit card payments and mortgage – into one debit card account so that you can directly make payments through that account. What is leftover for your groceries, gasoline and other expenses can come out of your regular checking account. This helps you place your monthly and yearly bill expense money out of easy reach, so you stick to your budget and keep things paid in a timely manner.
It is important to use a no-fee account, though, so you don’t lose money paying for the separate payment account. Pay the credit card with the highest interest first. That will free up more money to pay off the rest.
Decrease Expenses –
If budgeting determines you will only be able to make the minimum payment, you are not likely going to be able to pay off the credit cards. Where can you decrease some expenses each month? Can you limit or eliminate eating at restaurants? Can you cut the cable television or subscription services? This is a good time to get off of that $200 a month cigarette habit.
Increase Income –
Can you work some overtime at work? Can you earn some gig money (sadly, it’s usually not enough to be worth your time)? Can you start your own business or write a blog that engages your readers? Blogs full of gorgeous travelog pictures that are sponsored or have affiliate links can earn some extra income. Amazingly, people who monetize their channel can earn some money with cute cat videos on YouTube. Nerdwallet suggests that those lucky enough to have a spare bedroom might consider renting it out on AirBnB.
Ask the Credit Card Companies to Lower Your Interest Rate –
If you have a good payment history, the card issuer might indeed lower your rate. Then, you will have to return to your budget and see if that helps you fully pay the cards off. Otherwise, you will need to try to reduce your interest rates in another way.
Get a Zero-Interest Credit Card and Consolidate –
According to Nerdwallet, one dramatic means of lowering your interest rate is to apply for a zero-interest credit card. Usually, such cards allow you 12 to 18 months interest free. This is a good strategy if you can throw the interest payment portion of your old credit card payments at the balance. You will need a bit of a higher credit score to qualify for this strategy, though. Be aware of the interest rate that will kick in after the introductory period.
Get a Personal Loan for Debt Consolidation –
If you want a stable, lower interest rate and the ability to make one payment each month, then look to a personal debt consolidation loan. These can be a bit easier to qualify for and still allow you to throw more money in paying down the balance each month. If done with a strong amount of discipline, these plans have the goal of payoff of your debt.
Put the Cards Away –
Don’t take the cards with you when you go out. This will help you avoid using them more. If you are reading this article, you likely need to just stop using them for a while. Any more, if you can’t pay the balance each month at these interest rates, they really are a trap.
At Keel Associates, we specialize in helping people overcome their heavy debt load. Contact us for all of your questions on debt and debt consolidation
