Getting a credit card can help in a lot of ways. It can help pay for gas, food, school books, clothes or even the occasional night out. But, eventually, creditors are going to want their money back and you’ll be responsible for paying it.
There are many ways you can resolve credit card debt, and you may need to act fast if you’ve spent your limit. Here’s how:
Find extra sources of income
If your financial hole isn’t terribly deep, you may be able to dig yourself out with a side hustle or by selling unwanted items you have around the house for cash. Sometimes clearing out a closet or picking up a weekend shift at a local store is enough to get you back on the right financial track.
Pay off the largest debt first
People who own multiple credit cards often have various spending limits on each one. One way to resolve credit card debt is by using the avalanche strategy. The avalanche method is one by paying off the largest debt first and working down to the smallest debt.
Pay the smallest debts first
There’s another strategy to pay off debt called “snowballing.” Snowballing works by paying the smallest debt off first, freeing up that money to put on other bills — eventually working up to the biggest debt. By doing this, credit cards that are paid off won’t have interest fees, making it easier and faster to pay off larger debts.
File for bankruptcy
If your debt is overwhelming and you’re finding it impossible to pay all your credit card bills, then you have one more option. You could file for bankruptcy. Bankruptcy would allow you to resolve some or all of your debt quickly.