Are you trying to get out of debt, but seem to be stuck in the credit card merry-go-round? Since credit cards typically have some of the highest interest rates of any type of loan, it can be very difficult to completely pay them off. This is especially true if you have large balances or multiple cards. Here are a few tips to use to get rid of that credit card debt.

  1. Use a calculator. I’m not just talking about a regular calculator. If you are looking to tackle a looming credit card balance, you can use a Credit Card Payoff Calculator to see what it will take to pay off your credit card balance, and what you can change to meet your repayment goals. Try out ours, here: https://cucalc.org/014468/payoffcc.php

  2. Employ the Debt Snowball Method.  If you are a regular Savings Corner reader, you know Dave Ramsey is one of my favorite financial gurus. I would say the debt snowball is Dave’s trademark. Whenever I hear someone talk about trying to get rid of debt, they are likely to bring up the debt snowball – paying off small balances first and working your way up to the larger ones, without regard to interest rate. If this sounds like the plan for you, read more here: https://www.ramseysolutions.com/debt/how-the-debt-snowball-method-works

  3. Consolidate into a personal loan. If you have multiple credit cards with larger balances, and you are committed to getting out of debt, a debt consolidation loan might make sense for you. The idea here is that you are combining all of your outstanding high-interest credit card debt into one large loan with a lower interest rate. This can save you a ton on interest. The two most important things about this are: the interest rate will be lower and the loan will be closed-end, not revolving. You will pay it off at the end of the term, rather than staying on that credit card merry-go-round. However, one big caveat: you must be disciplined and NOT add more debt on those credit cards. Otherwise, you’re just digging yourself in deeper. If this sounds like the best option for you, Coosa Valley Credit Union has one of the lowest personal loan rates around right now. We would love to help set you on a good path financially!

No matter which method, or methods, you choose, focusing on reducing credit card debt is always a smart choice!