Credit card debt isn’t exclusive to those who make under 6-figures. Wealthy people have credit card debt too. In fact, high-income earners are known to carry more credit card debt than low-income individuals and for a longer period of time. They also lie about how much debt they’re in and feel embarrassed because of it. Sound familiar?
Credit cards are the great equalizer. It’s ironic that they are a necessity for establishing credit because they are the reason why millions of Americans are drowning in debt. You can reduce high-interest debt more quickly if you follow these steps.
- Contact your credit card company to negotiate your interest rate.
- If they won’t reduce your rate, look for a Zero APR introductory offer and transfer your current balances to the new card. Be careful, the offers typically only last for up to 6-months.
- Pay off the smallest balance first. Then focus on the next, and so on.
- Never pay just the minimum. The bigger your monthly payment the more quickly you will reduce your balance.
- And be mindful before using a credit card to pay for a product or service.
No matter your income, once you track your spending and reduce where you can, you will be able to make bigger monthly payments. And, instead of spending your free time on the couch watching Netflix, think of how you can earn extra cash. If you are a teacher, offer tutoring. If you are a doctor or nurse practitioner, offer after-hours telehealth service to patients. Those who have hobbies like photography or painting can sell their art online. In the meantime, try not to feel ashamed of your debt. Remember, wealthy people have credit card debt too.