Carrying balances on multiple credit cards is stressful and expensive, and paying them off quickly can be a challenge. That’s especially true if you are living paycheck-to-paycheck or dealing with other debts simultaneously, like student loans.
The only way to get out of credit card debt is to stop creating new debt while paying off what you owe. This means you need a budget that covers all your expenses and builds in emergency savings.
Create a budget that’s optimized for getting out of debt
A budget is essential in your quest to get out of debt, no matter which debt relief option you end up using. You need to get a budget in place—written out and not just in your head.
Take stock of your debts and decide on a repayment strategy
Now it’s time to get down to the nitty-gritty of obtaining debt relief. That starts by figuring out exactly how much you owe, what it’s costing you, and where each debt stands.
This is where your budget comes in because minimum payments aren’t going to help you get out of debt quickly. Instead, you need to put as much money as possible towards paying off one debt at a time.
You may also want to adjust your strategy if you have debts that are behind. For example, if you’ve missed a credit card payment by more than 30 days, it’s damaging your credit.