Paying off credit card debt is a goal for many families who had to use the funds to pay for emergencies or to maintain their quality of life. The average household debt is $8,000, which can make it difficult to pay collection agencies while still covering other expenses such as mortgage and bills. If you want to alleviate your debt and take control of your finances, follow the tips below.

How to Reduce Credit Card Debt

1. Manage Spending & Saving Habits 

To start a long-term budgeting plan, take a look at your checking account. Go back several weeks to get a sense of your spending habits. From the charges, circle the purchases you can eliminate, such as expensive dinners and memberships you don’t use. Once you start managing daily spending, you can put the extra funds, plus tax refunds and bonuses, in a savings account. This way, you can use the funds in your checking account to pay off the credit card debt and ensure you still have money to cover expenses and emergencies. 

2. Create Repayment Plans

From utilities to rent, it’s normal to have various monthly expenses. If you have several credit cards, consider consolidating your debt. This will make it easier to pay the debt over time while still having money for expenses.

With a qualifying credit score, for example, you can transfer the debts to a balance-transfer credit card with 0% interest during a promotional period. Interest on the card won’t start for 12 to 18 months, so you can use that time to pay the debt. You can then pay off the balance in installments. You could also get a fixed-rate debt consolidation loan, using that money to pay off the debt. You then pay back the loan over an extended period. 

3. Pay More Than the Minimum

To still have money for expenses, many people make minimum payments to whittle down credit card debt. This approach could drain more money, as interest increases the longer it takes to pay off the debts. Paying more than the minimum means the expenses will go toward the actual debt reduction and not just covering steep interest rates. Making more than the minimum payment will also reduce how much you owe and preserve your credit limit. This will improve your credit score.

To discuss your legal options to find relief from credit card debt, contact attorney Robert A. Schwartz in Rochester, NY. For more than 30 years, the debt relief lawyer has been committed to helping Monroe County residents avoid wage garnishment and start paying back their debts without compromising their quality of life. He’ll also share tips to put an end to frustrating phone calls from creditors. To arrange a consultation, call (585) 334-4270. Visit the law office online to learn more about options to manage and dismiss debt.