With accumulating interest and fees for late payments, it can take time to pay off your credit card debt. Although the situation may seem overwhelming, mapping out a plan of action will help you take control of your finances. Here are a few ways you can achieve debt relief.

3 Strategies to Pay Off Credit Card Debt

1. Consolidate Debt

If your debt is spread out over multiple credit cards, consider signing up for a consolidation loan. All unsecured debts are combined and the money from the loan is used to pay them off.

You’ll pay back the lender in monthly installments. Although this doesn’t reduce debt, paying one agency instead of several creditors each month makes the process easier to manage. This means there’s less chance of overlooking a payment, sending it late, and incurring penalties. 

2. Pay Off Card With Highest Interest Rate First

If you only have one or two credit cards to pay off, start by paying down the one with the higher interest rate. You’ll quickly start to see a change in the balance as there’ll no longer be late fees added to it. You’ll still be able to make minimum payments on the other card and can give it your full attention once the first is paid off.  

3. Reduce Unnecessary Spending

A change in spending habits should be part of your debt relief plan. For a better idea of how much you spend versus how much you earn, keep track of your budget for a month. From there, decide what expenses you can eliminate. Small lifestyle changes like canceling rarely-used memberships or cooking instead of dining out are two ways to save money that you can put towards paying off your debt.  

To discuss debt relief options, reach out to C. Roland Krueger Attorney and Counselor at Law in Lexington, NC. The bankruptcy attorney will assess your situation to determine whether filing for Chapter 7 or Chapter 13 is the best way to ensure asset protection while you get your finances back on track. Learn about your legal rights during bankruptcy online and call (336) 248-8464 for a free initial consultation.