Carrying a significant amount of credit card debt can become an overwhelming burden to bear. If you are feeling stressed out by the daunting balances you owe creditors, it’s time to implement a few financial planning strategies that will work to lower your obligations quickly. The following tips effectively help borrowers conquer the challenge of credit card debt and regain control of their finances. 

Best Financial Planning Practices to Reduce Credit Card Debt Faster 

1. Pay Down Cards With the Highest Interest Rate First 

High finance charges can make your debt much worse than it initially was. Stop your credit card balances from growing even more by focusing on paying off the card with the highest interest rate first. This will reduce the principal balance and limit the interest that accrues. Once you’ve paid that card off, move to the one with the next highest rate.

2. Put Extra Funds Towards Your Debts

Any windfall of money you receive should go directly toward paying down your debt. Resist the urge to spend it on a shopping spree or vacation, and make it count where it will matter most. Tax refunds, bonuses, commissions, lottery winnings, and inheritance money can all provide a large lump sum of cash for you to put on your credit cards.

3. Make More Than the Minimum Payment 

If you have the means to do so, always pay more than the minimum monthly payments on your cards. This is one of the most efficient financial planning strategies used to reduce debt. Also, consider making two payments each month. Every time you make a payment, the average daily balance will go down, lowering your interest charges. 

4. Request a Lower Interest Rate 

You may not be aware that this is an option, but you can call each credit card company and ask them for a lower interest rate. If they can offer you a better deal, it will decrease your monthly payments and fees, allowing you to pay off more principal with each payment you make. 

5. Consider a Personal Loan 

Another way to lower the annual interest rate of your credit card debts is to consolidate them using a personal loan. This can cut down your monthly payments, give you the opportunity to pay off more principal each month, and lower the overall total cost of your debt, so you can pay it down faster.

Financial planning is the key to a secure and stress-free future. Take a proactive approach to eliminating credit card debt by meeting with the professionals at First & Peoples Bank and Trust Company. They offer a variety of solutions that can help you reach your debt relief goals quickly. Since 1932, they have provided the residents of Greenup County, KY, with high-quality banking and loan services. With locations in Ashland, Flatwoods, Greenup, and South Shore, KY, and two locations in Russell, they make it convenient to take care of all your financial needs. Call (606) 836-0211 to inquire about opening a savings account or applying for a personal loan, and visit their website to browse the various options they have available.