Paying Down Credit Cards

A close up of a Mastercard logo on a credit card.

Posted on February 14, 2022 Last Updated: February 14, 2022

Paying Down High Balance, High-Interest Debt

Almost everyone has fallen into credit card debt at least once in life. The very nature of credit cards makes it easy for consumers to spend now and pay later, which causes many to fall into debt incredibly fast. When you’re carrying high balance and high-interest credit card debt, it can definitely feel like you’re fighting a losing battle, but it doesn’t have to. There are a few things you can do to help yourself get out of debt faster:

Start Budgeting Each Month

One really helpful thing you can do to get out of credit card debt is to start budgeting. Creating a budget is a great way to see where your money is going each month. Chances are if you have a lot of credit card debt, you might be looking at an opportunity to better manage your money to prevent overspending and debt. A budget will help show you where you are spending, and where you can cut back to save the most money with the least impact on your quality of life.

Cut Back or Cut Out Bills

This tip goes hand in hand with budgeting. Once you create your budget, look for areas where you can trim expenses and save money each month. For example, you can probably save a ton of money by switching from a legacy cell phone provider to a budget carrier. Most of the time, they provide the same service for a fraction of the cost. Savings like this frees up money in your budget to hit your credit card balances with purpose.

Find Extra Cash Each Month

Side hustles can take many forms, including shoveling snow for your neighbors to ridesharing apps to creating content for YouTube or a personal blog. Regardless of what you choose, side hustles can be a great way to earn supplemental income. Just remember when you’re choosing a side hustle, to do something you enjoy, and when you receive your paycheck, add those funds to what you are already paying toward your credit card balance.

Stop Using Your Credit Cards

This may seem like an obvious one, but it’s a step that most people skip over. When you’re saddled with high-interest credit card debt, it’s usually a result of spending more than you make. One really easy way to get out of credit card debt is to stop using your credit card completely. By limiting your credit card use, your balance will go down as you make payments, instead of up when you are adding to the balance.

Stick to the Plan

The most important part of paying down high-interest credit cards is sticking to it. There will be a time that you will want to splurge, but with discipline and hard work, you can keep your plan on track. If you feel completely overwhelmed, it may be time to ask for help. A debt management plan is a more structured approach to reducing debt, with the help of a professional.

KEMBA can Help!

As a credit union, our mission is to help our members manage their finances. KEMBA has competitive credit card offers that not only reduce your interest rate but also help you pay down your balances more quickly with everyday low rates. Plus, KEMBA offers complimentary financial counseling to help you budget and take control of your finances. If you have questions about how KEMBA can help you pay down your debt, contact our dedicated local associates at 614.235.2395 and select Option 4.