How to Get Rid of Credit Card Debt Quickly

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Climbing out of credit card debt may seem daunting, and along with the minimum monthly payments that get you nowhere, it’s easy to feel stuck. Knowing where to start is half the battle, especially when tackling those high interest rates that make it seem like the finish line for paying off your credit cards is 1,000 miles away. But don’t panic, your first step is finding out how to eliminate the looming debt that keeps you up at night.

Here are some tips on how to quickly tackle credit card debt:

Budget

It’s good to have a plan for where your money is going. By listing your income, main expenses (housing, utilities, food, car or transportation payments) and other expenses which include entertainment, monthly subscriptions, and other miscellaneous items, you can see where your money is going and how much you have left over to payoff your credit cards. It’s good to make a spreadsheet of all your monthly expenses so realistically you know what you will have left over.

No more credit cards

Yeah, you heard me. It’s time to leave them behind. Like quitting smoking, if you’re going to go all in and eliminate your credit card debts, you have to quit them all, and not keep a spare if you want to cheat. Use your debit card or cash instead for expenses.

Start paying the smallest to the largest

The Debt Snowball Method is good for people with many credit cards and they don’t know where to start. The credit card with the lowest balance should be paid off first because it will be the fastest to tackle and will make it seem like paying off the other cards with high balances less discouraging. It will help build the motivation needed to attack one credit card at a time. By paying the minimum on the other credit cards, you will be able to payoff the smallest debt sooner, and once that is paid off, go on to the next smallest debt, and so forth.

Time to cut back

Now, I’m not saying to deprive yourself. Just don’t use every payday as a “treat yourself” moment. Try to lower your monthly bills by making more food at home and meal planning instead of going through the drive-thru every day or ordering from Doordash. Buy generic if you can get away with it. Stop leaving the lights on if you’re not going to be home. The minute you start to cutback, you’ll look at your checking account and be relieved you have money left over to start chipping away at the credit card debt that is holding you back.

Prioritize your spending habits

Take a look at your budget and decide what you can live without for awhile. Instead of that morning trip to get coffee on your way to work, make coffee at home instead and put it in a thermos to take with you. Order take-out for lunch once a week and bring your lunch to work the other days. Avoid going to the theater or concerts for a little while. Get rid of your premium channels on your cable bill. Think about the things you can live without for about six months while paying off your credit card debt.

Get a side hustle

During some free time, see what you can manage as far as a part-time gig. A ton of people drive for apps like Lyft or Uber, deliver food through Instacart or Shipt. Maybe go through your closet or garage and see if you can sell things through eBay or Poshmark. Use the skills you have to tutor or freelance, or look into some work-from-home jobs you can do part-time while you have nothing to do on the weekends. Remember to use those earnings as extra money to get rid of your debt.

Remember that when one credit card debt is gone, you can take that money and start paying on the next debt. The more you payoff, the more money you have to pay the other cards, and before you know it you will be close to becoming credit card debt free.