The holidays were great, weren’t they? You got to see your family, eat some great food, open some presents…uh, oh. The presents. Paying for the presents wasn’t a jolly occasion. With every swipe of your credit card you could feel the debt piling on, and now your credit card provider wants to be paid.
How will you go on living a normal life AND paying down your credit card debt? Relax, FNB Fox Valley is here to help. We’ve brainstormed some tips to help you reduce and eliminate your credit card debt!
Stop charging- put the credit card down and slowly step away from the register. This may seem like a “well duh!” piece of advice, but many people think “I can just charge the small amounts and I’ll be fine” (buzzer noise). Wrong! Hide your credit card in your sock drawer and don’t let it see the light of day!
Keep paying the essentials- food, gas, mortgages, student loans and car loans all fall into this category. However, fine dining, new clothing and electronics do not.
Select a payment style- there’s the “avalanche,” where you start with the credit card with the highest interest rate so you can pay off debt faster, or the “snowball,” where you start with the credit card with the lowest balance. The snowball takes longer, so you pay more in interest, but it also provides more motivation because you get a quick victory.
Haggle- if you’ve experienced a temporary hardship, you can try calling your creditor to see if they will give you temporary hardship status or work out a payment plan. If you’ve always been a good customer (until now), you can also try to negotiate a new interest rate.
Get help- credit counselors and debt companies can provide help, especially if your credit card debt is extremely high.
If you’re sick of high-interest credit cards, FNB Fox Valley is also offering a 1.99% no fee balance transfer special right now. It’s a great way to ensure you’re not piling on the high-interest debt when you do use your credit card.
FNB Fox Valley hopes these tips work for you in paying off the credit card debt you accumulated during the holiday season. Good luck, and we hope to see you soon!