Credit card debt is a common problem among people, and reducing that credit card debt or completely paying it off is just a problem to most card holders. Many people will want to reduce their credit card debt as quickly as possible. To do this, others seek the help of their friends and relatives and some even consult professional financial advisers (creating another expense in the process).

How to Reduce Credit Card Debt

Here are some tips to help reduce your credit card debt.

Hide Your Card – STOP using it

The first step in reducing credit card debt is to stop using it. You can’t reduce your debt if you keep piling up balance every time you buy an item or avail of a service. Do not carry it whenever you go out to shop or stroll because the temptation of using is always there. Leave at home. If possible, you can request your trusted friend or relative to keep it for you, in a place that you don’t know. This will help you buy things that you can with your cash or debit card.

Pay Balance Regularly

Whenever you receive your income, you pay. Set aside what you need, and use the remaining to pay your debt. At this time, saving is not a priority especially if your financial liability is very high. Remember that interest rates are high, so you need to pay your debt as quickly as possible.

Monitor Your Expenses

With your card hidden, you are supposed to be using whatever cash you have in hand. With that, you need to log every expense you make and try to identify something that you can eliminate. An example would be a daily coffee from Starbucks. You can sacrifice some days not buying that latte and have a free or cheaper one in your office’s pantry. You can even bring an instant coffee powder with you and all you need is hot water. The point is, from your list of expenses, you can be creative enough to save a dollar or two a day, and that money can be used to help you pay your credit card bill.

Impose Discipline – Know Your Needs and Wants

It’s unfortunate that many card holders don’t know the difference between their needs and their wants. Many of us (yes, including me), buy on impulse, stating words like ‘I need this because…’ or ‘This sale is once-in-a-lifetime opportunity, I need to buy this…”.

Personally, what I did was to assess my bills, listed all the items that I bought using the card, and then check where these things are. Sad to say, almost 50% of them are just kept inside the closet or are plainly unused for months, mostly clothes and gadgets. In fact, I only used these things a few times or just for a short period of time.

The key here is to do the assessment before buying an item using your card. The convenience is tempting, but you really need to think – twice or thrice if possible. Understand what you really need and prioritize.

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