While it offers tremendous convenience, owning a credit card also poses some serious dangers like overspending and drowning yourself in debt. The last thing you want is to struggle for years just to free yourself from financial burden.
 

Check out GoBear's tips on how you can climb out of credit card debt as quickly as possible.   

Check your spending

Jot down all your expenses and mark the necessary ones like groceries and gasoline. Allot specific budget for every expense and stick to it. The money you are able to save can be used to pay for your credit card balance.
 

Getting out of credit card debt may take some time, but you'll get there in no time as long as you avoid unnecessary purchases. The earlier you start paying your balances the sooner you'll achieve financial freedom.

Reprioritize your budget

Create a monthly budget and follow it religiously. Take note of your income before listing your fixed expenses such as utility bills, mortgage, and insurance. Include how much you pay for them. This way, you can keep track of your spending habits while trying to save a few pesos.

Pay more than the bare minimum

Do you pay only the minimum every month? You may have to re-think this! Credit lenders set the minimum payment between 2% and 3% of the credit card balance every month. This only means that your minimum payment only covers the interest of your debt. 

The best way to get out of debt is to pay in full what you owe.

Focus on one credit card at a time

If you own two or more credit cards with balances, then you have to make sure that you always pay at least the minimum of your cards. After figuring out how you can budget – let's say your income, you can start paying off the total balances of your cards.

Don't know how to begin? You can either pay for the card with the highest interest rate first or the one with the minimum balance.

Combine your debt 

Combining or consolidating your debt can help reduce your debt. How? You can merge all high-interest balances into one credit card with a lower rate and pay them consistently.

You can also find 0% balance transfer for an introductory period so it's easier to pay for everything.

One more tip: Be mindful of your spending habits to steer clear of new debt.

Find a card with low interest rate 

If your credit card has a high interest rate, then it's better to look for a new card provider. The lower the interest rate, the better. It means that you're actually paying off the debt more than the interest, decreasing your outstanding balance.

Are you ready to be debtless? These tips and a huge amount of discipline should let you take full control of your finances.


Find the best credit cards that suit your needs by comparing with GoBear today!

 

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