Escape the Bondage of Credit Card Debt

Are you trapped in credit card debt? 

TransUnion reported that the average credit card balance in September was $6,500. If minimum payments are made at 20% interest, it would take over 18 years to repay! Plus, more than $9,000 of interest would be paid. If rates fall to 19%, monthly payments are lowered by $5, and the length of debt would only drop by 2 months. So, instead of hoping credit card rates will fall, making payments easier, commit to paying off those balances! Freedom doesn’t come from lower rates. It comes from intentional action.

The avalanche and snowball are two payback methods. Choosing the avalanche means you pay extra each month on the debt with the highest interest rate first, while continuing to make minimum payments on any others. Apply any and all extra money to that debt. Once it’s clear, apply that payment to the next highest, then the next, while refusing to charge other purchases. You’ll save the most in interest charges this way. The snowball method involves paying off the smallest loan first while making minimum payments on the others. Once that’s paid off, go to the next, and the next. There’s a psychological motivation to eliminate the number of debts by paying them off this way.

If you have good credit, you can apply for a balance transfer card that pauses interest charges while you pay down debt. The key is never adding to your debt during the payoff period. Cut expenses, take on side jobs, and apply extra income to debt. Prioritize financial freedom this year!

If you’re struggling with credit card debt, let Christian Credit Counselors help. They can create a debt management plan specifically for you. For more information, visit online at crown.org/ccc.