There’s a little more to retirement than meets the eye.
You can’t only focus on savings and expect to get where you want to be, especially when you have interest rates from pending debt eating away at your hard-earned cash.
Sometimes you need to take a step back and handle other financial obligations before you carry on with your plans for the future.
If you’re ready to start the next chapter of your life, but are currently being held back by overdue payments on your credit cards, then I’m here to help.
Don’t sweep your due balances under the rug and let them grow even bigger than they already are.
Follow these 3 simple guidelines to escape credit card debt once and for all!
First things first, organize the current credit cards that you have open in your name.
Get everything laid out on paper and determine which balance has the highest interest rate. Once you do that, you can target whichever credit card has the steepest rate.
As a rule of thumb, you should always try to pay off your debt in order of highest to lowest interest rate.
This will help you avoid racking up fees in the long-run.
Another option that you have at your disposal is to consolidate your credit cards with a personal loan.
These types of loans typically range between $1,000 and $100,000 and can typically be paid off within 7 years.
On top of that, they have a fixed interest rate, meaning you’re hit with the same payment each month.
In short, it’s a popular vehicle for gaining control of your debt, considering it merges all of your dues into a single account.
Sure, this adds a bit of convenience on your end, but it also cuts down on your overall APR.
Just to give you an idea, the average credit card interest rate is somewhere around 17%. However, a regular credit card debt consolidation loan is approximately 6%!
Still, if that doesn’t strike your fancy, then maybe this alternative will.
0% APR credit cards are another route you can take to get ahead of your debt. It’s essentially a way to transfer your existing balance to a new account with no APR.
Usually you have 12 months or longer to get things under control. Here’s the catch…
You have to pay off the balance in full before this grace period ends. Otherwise you’ll be subject to an even higher interest rate.
If you’re drowning in debt, it’s time to do something about your financial situation.
Tackling the credit cards with the highest interest rate first is a great place to start, but know you also have the option to consolidate your existing debt via a loan or a 0% APR credit card.
The choice is ultimately yours, just know that you should erase outstanding debt prior to gearing up for retirement.