5 Ways To Combat The Credit Card Debt Cycle | Refresh Financial

5 Ways To Combat The Credit Card Debt Cycle

 Credit Card Debt Cycle

How does one break out of the debt cycle? You can transfer your balance to a new card for that oh-so-enticing 0% introductory interest rate, or you can get a consolidation loan or maybe even borrow money from reliable mom and dad. It’s never enough, though is it? For some of us, credit card debt just seems to grow and grow, no matter what we do. We all know it's wise to cut back on spending and stick to a budget, but what are the real secrets to escaping debt? Today, we'll discuss 5 ways to combat the credit card debt cycle.

 

1. Pay More Than The Minimum

- The more you throw towards your debt, the more you save on interest and the faster you can move on with your life.

2. Save An Emergency Fund

- We tend to use our credit cards as an emergency back up when things get tough. However, this mindset can lead you into crippling debt. Save an emergency fund to avoid increasing your debt load.

3. Stop Using Your Credit Cards

- Until you've paid your debt down, refrain from using your credit cards. You'll be surprised at how fast you're able to slim down your debt when you aren't continuously racking up your bills. This strategy also points to the importance of saving an emergency fund for yourself, so you aren't tempted to reach for your cards if something comes up.

4. Leave Your Cards At Home

- Remove them from any online shops and detach them from Apple or Android Pay and leave them at home. You know you'll be tempted, so nip that temptation in the bud.

5. Get A Secured Savings Program

- Your first thought might be, "How can more debt help me?"
A secured savings program requires no money up front to get started, and your credit score is not a factor when it comes to being approved. Every payment you make builds your credit score, and at the end of the program, you'll receive the loan payout which you can use towards your debt. Click here for more information on this incredible credit building program!

At the end of the day, there's no getting around the importance of budgeting, but the tips listed above will help you begin experiencing the positive changes that you long to see.

Once you've cleared your debt, avoid falling into it again by practicing smart financial practices. Check out our Financial Intelligence Training (F.I.T.), which is free for every client. This way, as you work towards building your score and savings to clear your debt, you can also learn how to properly manage your money and avoid any future debt.

Have you ever found yourself in a cycle of debt? How did you break free? Let us know in the comments!

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