How to Begin Paying Off Your Credit Card Debt Today

You can significantly increase your chances of eliminating your credit card debt right now by taking one simple step: track your spending.

During the next 30 days, write down your spending habits. That way you'll know where your money is going during a typical month. You may also want to include a figure for unexpected expenses such as home or car repairs and gift-giving.

Once the 30 days is complete and you have a total expenditure amount, compare your tally with your monthly income. If you have a surplus, you have money to put toward your credit card debt. If you have a shortfall, then you must cut your expenses.

Establish a Savings Strategy

Yes, saving can become as easy as spending – you just need to practice discipline.

Regardless of how much you can set aside for savings, you'll want to start as soon as possible. You can do this by establishing three separate accounts – emergency funds, unexpected bills and investments.

Because you tracked your expenses, you should have a good understanding of how much money you need each month. Once you know this figure, place it in your checking account. Then divide up the remaining funds between your savings accounts.

Don't worry if you feel like your savings amounts are small. You're establishing a new routine; it's natural for the process to feel strange. Besides, having your money in a savings account (instead of a checking account) makes it more difficult to spend.

One way to grow your investment savings quickly is to place unexpected money – such as gifts and bonuses – into the account.

Start Targeting Your High-Interest Credit Card Debt

Now that you have strategy in place, it's time to start paying off your debt. Begin by targeting your high-interest credit cards, but don't just pay the minimum balance. This is a trap that will keep you in debt for a long time.

You can also consolidate your debt to credit cards with lower interest rates. However, keep in mind some credit card companies offer introductory rates that can quickly increase. Be sure you understand the guidelines before agreeing to a new credit card plan.

One way to keep yourself on pace for paying off your credit card debt is by writing out a timeline. Studies have repeatedly shown that goals are more often achieved when they're written out. If you have trouble sticking to your strategy, you may want to seek out professional help.

A credit counselor can come up with a structured plan that will help you eliminate your credit card debt and feel better about your future.

Contact us today to speak with a professional who can offer free advice that will put you on a path to financial freedom.